Case Study

How We Improved Our LTV:CAC from 1:1 to 5:1

CloudSync Platform's 18-month journey from burning cash to profitable unit economics.

The Problem

Starting Metrics:

  • • LTV:CAC = 0.9:1
  • • CAC = $4,200
  • • LTV = $3,800
  • • Monthly Churn = 9%
  • • Burn Rate = $200K/month

"We were losing $400 on every customer. At our growth rate, we'd run out of money in 6 months."

- CEO, CloudSync

The Transformation

Phase 1: Stop the Bleeding (Months 1-6)

  • ✓ Paused paid ads, focused on organic
  • ✓ Improved onboarding to reduce early churn
  • ✓ Increased prices by 30%
  • ✓ Result: CAC ↓ to $2,800, Churn ↓ to 6%

Phase 2: Build Retention (Months 7-12)

  • ✓ Launched customer success program
  • ✓ Added power user features
  • ✓ Implemented usage-based upsells
  • ✓ Result: Churn ↓ to 4%, NRR = 108%

Phase 3: Scale Efficiently (Months 13-18)

  • ✓ Reactivated efficient paid channels
  • ✓ Built referral program
  • ✓ Optimized pricing tiers
  • ✓ Result: CAC ↓ to $1,600, LTV ↑ to $8,000

After 18 Months

5:1
LTV:CAC Ratio
$0
Monthly Burn
115%
Net Retention
3%
Monthly Churn

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