How do you measure the financial health of your business? When it comes to analyzing the financial health of your online business, the two most important metrics to pay attention to are customer acquisition cost (CAC) and customer lifetime value (CLV). While Customer acquisition cost tells you how much it costs to acquire a new customer, customer lifetime value signals how much a customer is actually worth to your business. So how do these metrics work together to help inform business decisions? In this post, we discuss what CAC/CLV ratio is and how to calculate and improve it: