248: CAC vs. LTV - 2 Numbers That'll Make or Break Your Business
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As a gym owner, there are two crucial numbers you need to keep in mind at all times: LTV and CAC.
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.
