SaaS content strategist reveals how obsessing over high LTV:CAC ratios sabotages growth based on real founder case studies and insights.
https://medium.com/@sonuarticles74/why-perfect-ltv-cac-ratios-kill-saas-growth-efa9a583a008
SaaS content strategist reveals how obsessing over high LTV:CAC ratios sabotages growth based on real founder case studies and insights.
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A SaaS founder I worked with hit a “perfect” 7:1 LTV:CAC ratio.
He celebrated it like a milestone.
The problem? His competitor was scaling 4x faster… with a “messy” 3:1 ratio.
That’s when I realized: the obsession with perfect ratios can kill growth.
Over the past few years working with SaaS companies, I’ve seen this pattern repeatedly. Brilliant entrepreneurs sabotage their own growth by chasing metrics that look impressive on paper but strangle real opportunity.
After working with SaaS companies, I’ve identified a recurring behavioral pattern that derails growth strategies. Founders treat LTV:CAC like a video game high score, constantly pushing for higher ratios without considering the strategic implications.
Here’s how this plays out across the companies I work with:
The wake-up calls always come from external sources — investor meetings, competitor analysis, or market share reports that reveal the true cost of metric obsession.