NEW - Listen to the Private Equity Value Creation Podcast
Private Equity CEO CMO Our Clients About Us Book Book a Consult

Equilibrium of Optimal Marketing Investment

LTV to CAC ratios are incredibly high in many B2B companies. Yet the same companies hold back on ramping up marketing spend.

If your LTV:CAC ratio is well above 3 (in many companies this number is north of 10) and your Payback Period is below 12 months, ramping up sales and marketing spend aggressively can create a tremendous amount of enterprise value.

Why hold back any spend when you'll recover your investment in less than a year and generate returns for 10+ years?

If your break-even point on marketing spend is at the 18-24 month mark and your LTV:CAC ratio is still above 10, then it's time to optimize and analyze what's working and where spend is being wasted. Once optimized, scale aggressively again.

If LTV:CAC is below 3 and Payback Period is north of 12 months, it's time to go back to product and customer feedback before you think about investing more into acquisition.

Subscribe to SaaS Marketing Simplified!

Get bite-sized insights on SaaS marketing, growth and strategy in your inbox a few times a week.


Schedule a consult

Tell us more about you and your SaaS company.