5. Compare with LTV Next, let's compare LTV and CAC. LTV can be calculated using the following formula: LTV = average purchase price x average purchase frequency (times/year) x average duration (years) Be careful, because if the CAC exceeds the LTV figure, the business will no longer be profitable. It is said that a campaign will be profitable if its LTV is greater than three times its CAC, so keep this number in mind. If it is less than 3x, we will review our sales activities and marketing strategies to lower the CAC.

[5] How to improve CAC There are 5 ways to improve your CAC 1. SEO measures We explained that Organic CAC often allows you to acquire customers at a cheaper price than Paid CAC, and among these, SEO measures are recommended. SEO is a strategy to increase organic traffic by ranking highly in search engines such as Google and Yahoo! JAPAN. If you rank highly in search engines, it doesn't cost anything to get one traffic hit.