Let me blow your mind.

Our customer Lifetime Value/ Customer Acquisition Cost  (LTV:CAC) is 6.41:1 - excluding door to door.

The same ratio for our door to door team last year was 2.56:1.

If your ratio is 1:1, you're breaking even. According to Google, a good ratio is 3:1. Anything above 5:1 shows you can afford to spend more on ads. 

How did I get these numbers?

LTV - I took our churn rate on a monthly basis. For us, that was 1.87%. Then, take 100 and divide by churn rate. That shows how many months you can expect a customer to be with you. Then simply multiply your average profit margin by that number of months. We can reasonably expect a customer to stay with us for ~53 months.

CAC - This one is simple. Total spent on ads/ number of customers gained. We averaged $98 per customer gained last year.  

We're looking at this data and making a big decision. We are increasing our ad budget 5x this year. Still pouring a lot into D2D.