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Tag: customer lifetime value

The New Math: Customer Contribution Not Long Term Value

Post author By Zuhair Imaduddin
Post date January 9, 2026
No Comments on The New Math: Customer Contribution Not Long Term Value

For over a decade, the Customer Lifetime Value to Customer Acquisition Cost ratio (LTV:CAC) has served as the North Star for growth-focused businesses. The commonly accepted benchmark is to maintain an LTV:CAC ratio of at least 3:1, meaning companies should earn three dollars for every dollar spent acquiring customers. But in 2025, this fundamental framework […]

Tags customer acquisition cost, customer churn, customer growth strategy, customer lifetime value, lifetime contribution model, LTV CAC ratio, marketing metrics, privacy regulation, subscription economy trends

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(Source: Flickr) In this post we outline some mathematical concepts that may prove useful for solving consulting case questions. 1. Break Even Analysis: Relevant when trying to decide whether to launch a new product or invest in a project with high fixed costs. 2. Customer Lifetime Value: Customer lifetime value is a prediction of the entire future […]

Tags break even analysis, case math, consulting, consulting interviews, customer lifetime value, Management Consulting, net present value, perpetuity, price elasticity of demand, Product Life Cycle, profit margin, return on investment, rule of 70