A commonly used benchmark is 3:1 - a customer worth roughly three times what it costs to acquire them. Below 1:1 you're losing money on every customer before overheads. Above 5:1 can mean you're under-investing in growth, not that everything's fine.
Payback period matters as much as the ratio. A great LTV:CAC ratio with a 14-month payback can still starve a business of cash - most D2C brands want payback inside 6-12 months.
Be honest about lifespan and margin. If repeat purchase data doesn't exist yet, model conservatively - an optimistic LTV input makes every channel look profitable on paper.
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