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Answers to Frequently Asked Questions about Marketing % Of Customer Acquisition Cost
LTV is a (Revenue the customer pays in a period – gross margin) ÷ Estimated churn percentage for that customer
The higher the LTV:CAC, the more ROI your sales and marketing team is delivering to your bottom line. However, you don’t want this ratio to be too high, as you should always be investing in reaching new customers. Spending more on sales and marketing will reduce your LTV:CAC ratio, but could help speed up your total company growth.
LTV = ARPU (average monthly recurring revenue per user) × Customer Lifetime. Using churn, you can also determine lifetime value. (Which is a number you likely have more readily available). User churn / ARPU equals LTV. Your lifetime value will decrease the higher your user churn rate.
It contrasts the loan amount (“loan”) with the estimated post-construction value (“value”) of the structure. Similar to the LTC ratio, we use the actual loan amount for the “loan” portion of the LTV ratio. However, the value is arbitrary; therefore, a property assessor evaluates it.
< 80% A healthy loan-to-value ratio, as a general guideline, shouldn’t be higher than 80%. A high LTV is anything above 80%, meaning borrowers may pay higher borrowing fees, need private mortgage insurance, or even be turned down for a loan. LTVs, more significant than 95%, are frequently viewed as unsatisfactory.