The Problem
Customer Acquisition Costs (CAC) Outweighing Lifetime Value (LTV)**
When CAC rises faster than revenue, businesses enter a dangerous cycle: spending more to earn less. Many organisations don’t realise the imbalance until margins are already tightening. Typical symptoms include:
- High CAC with flat or negative ROI
- Low retention and weak product–market fit signals
- Marketing spend increasing without efficiency gains
- Sales cycles lengthening yet conversion rates stalling
- LTV too low to cover acquisition and servicing costs
This CAC-to-LTV imbalance is the single biggest commercial drag in growth-phase companies, especially in competitive markets. Without intervention, customer growth becomes unsustainable — every new sale erodes margin instead of creating it.
The Solution
The Customer Efficiency Growth Engine (CEGE)**
To restore profitable growth, we deploy the Customer Efficiency Growth Engine — a systematic framework that recalibrates your CAC-to-LTV ratio by refining every dollar spent across marketing, sales, pricing, and retention.
CEGE operates across four levers:
1. CAC Deconstruction
We break CAC into its micro-components to reveal where cost is inflated or wasteful:
- Channel-level spend efficiency
- Cost-per-lead and cost-per-qualified-lead
- Sales conversion friction points
- Unrealistic acquisition targets
- Duplicate or low-yield tactics hidden in blended CAC
This creates a clear, evidence-based view of where money leaks.
2. LTV Expansion Architecture
We expand lifetime value by mapping the complete customer value curve:
- Retention interventions
- Pricing and upsell pathway design
- Customer success cost realignment
- Recurring revenue stabilisation
- Churn prediction and prevention
A small increase in retention can multiply LTV by 1.5–3x — one of the highest returns available to any business.
3. Dollar Efficiency Rebuild
We re-engineer the commercial engine so every dollar of spend does the work of two:
- Zero-based growth budgeting
- High-ROI channel prioritisation
- Performance tracking and attribution redesign
- Commercial operating rhythm upgrades
Leadership gains visibility on true ROI and can spend confidently — or cut sharply.
4. CAC/LTV Ratio Recalibration
We then model optimal CAC/LTV scenarios, simulating multiple strategic pathways:
- “Efficient growth” (lower CAC, higher LTV)
- “Scale mode” (sustainable spend with defined caps)
- “Profit-first” (minimal CAC, stable retention)
This determines the most capital-efficient path for the next 12–24 months.
The Execution
The 90-Day Commercial Efficiency Sprint**
Once CEGE is deployed, we execute a 90-day sprint focused on fast, measurable shift:
Days 1–30: Diagnose & Stabilise
- Identify failing channels
- Remove unprofitable spend
- Shorten sales forecasting cycles
- Rapid retention uplift actions
Days 31–60: Rebuild the Engine
- Redesign the growth funnel
- Introduce upsell frameworks
- Strengthen sales enablement
- Resolve attribution bottlenecks
Days 61–90: Accelerate & Govern
- Install CAC/LTV dashboards
- Implement weekly commercial reviews
- Set spend caps and decision rights
- Model forward efficiency scenarios
This sprint creates a disciplined, capital-efficient commercial machine.
The Outcome
Lower CAC. Higher LTV. Growth That Funds Itself.**
Clients consistently achieve:
- Lower Customer Acquisition Costs
- Higher Lifetime Value per customer
- Reduced churn and increased retention stability
- Shorter, more predictable sales cycles
- Marketing spend that stretches further
- Growth that no longer requires constant reinvestment
A recalibrated CAC/LTV ratio transforms your commercial engine from a drain into a self-funding flywheel.