This chapter explores the significance of Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV) in business growth, highlighting ways to enhance these metrics for effective scaling. It discusses real-world examples, such as Starbucks' high LTV per customer, and strategies to boost LTV and reduce CAC, offering practical insights for improving these ratios within a business.
"When you finally crack this, you will have license to print money for as long as you possibly can." In this episode, Alex (@AlexHormozi) breaks down the LTV:CAC ratio and why understanding it is such a fundamental aspect to your business's growth. It's one of the key numbers Acquisition.com looks into when evaluating investment opportunities because it captures the core economic engine of the business more than almost anything else.
You'll learn
- Why It matters
- How to improve LTV
- How to improve CAC
- How it will make you tons of money and scale predictably
Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.
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