Financial + LTV:CAC modeling

Abe’s LTV:CAC financial modeling evaluates Customer Lifetime Value (CLV) against Customer Acquisition Cost (CAC) to measure marketing effectiveness. By targeting the ideal LTV:CAC ratio, we create a data-driven advertising strategy, not a guessing game.

Our approach to LTV:CAC financial modeling

Calculate customer Lifetime Value (LTV)

This is the total revenue a business anticipates from a customer over their entire relationship. A higher LTV equals higher long-term revenue.

Calculate Customer Acquisition Cost (CAC)

This is the total cost of acquiring a new customer, including sales, marketing, and onboarding. Lower CAC equals higher efficiency.

Calculate LTV:CAC ratio

This is simple — divide LTV by CAC.

Adjust spend accordingly

A 3:1 ratio is ideal. Anything less means you're losing money on each customer. More means you’re over-investing.

Smarter budget allocation

Financial modeling is key to our Customer Generation™ methodology. By using mathematical formulas, we eliminate uncertainty, reduce budget waste, and maximize ROI.

Improved profitability

There are many metrics to assess marketing performance. It’s dizzying. We focus on profitability measurements that help you gain trust and unlock budget for future marketing ideas and experiments.

Stronger stakeholder confidence

We work with companies at various stages of maturity. Regardless of where you are, you'll benefit from more predictable revenue forecasts — whether you're aiming for a funding round, improved margins, or expansion.
Connect with one of our experts to discover how Abe’s unique Customer Generation™ methodology can drive success for your product or service.