https://www.reddit.com/r/SaaS/comments/1mwe90i/my_clients_perfect_71_ltvcac_ratio_was_actually/

TL;DR: One of my SaaS clients hit a “beautiful” 7:1 LTV:CAC ratio. We thought we’d cracked the code—profitably acquiring customers like a dream. Turns out that ratio was slowing them down while a competitor at 3:1 was scaling 4x faster and raising Series B. High LTV:CAC can sometimes mean you’re playing too safe.

The “Perfect” Metric That Wasn’t

One client was proud:

• 7:1 LTV:CAC
• Consistently profitable acquisition
• Investors impressed
• Team celebrating

Meanwhile… competitor:

• 3:1 LTV:CAC
• Growing 4x faster
• Series B locked in

Our “efficiency” was costing us market share. Ouch.

What I Learned About Ratios by Stage

Here’s my simple playbook now:

• Pre-PMF (testing): ~2:1 is fine → focus on learning, not efficiency.
• Post-PMF (growth): 3–4:1 sweet spot → aggressive but sustainable.