248: CAC vs. LTV - 2 Numbers That'll Make or Break Your Fitness Business

In this episode of The GSD Show, the leading fitness business podcast, we’re diving into two crucial numbers every gym owner must track—LTV (Lifetime Customer Value) and CAC (Customer Acquisition Cost).

LTV, or Lifetime Customer Value, measures the total revenue you can expect to earn from a single customer over their entire relationship with your company. By focusing on getting customers to pay more, pay for more things, and pay for longer, you can increase your LTV and ultimately boost your business's profitability.

On the other hand, CAC, or Customer Acquisition Cost, measures the total cost of acquiring a single customer. Ideally, you want your CAC to be as low as possible. By running better ads, having stronger offers, improving your sales process, and generating referrals, you can reduce your overall cost to acquire customers.

Keeping these two numbers far apart from each other is crucial to the success of your business, so it's important to track them closely and make adjustments as needed.

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