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“LTV over CAC of above three best consumer mobile apps”
What It Means
Sustainable consumer mobile apps achieve lifetime value to customer acquisition cost ratios exceeding 3:1
Why It Matters
This ratio indicates healthy unit economics that can support aggressive growth through paid marketing
When It's True
For apps with proven retention, accurate LTV calculation, and stable CAC measurement
When It's Risky
When LTV calculations are overly optimistic or CAC increases with scale
How to Apply
Calculate LTV as ARPU × retention months
Measure true CAC including creative and platform costs
Don't start paid ads until hitting 3:1 ratio consistently
Example Scenario
“App with $20 ARPU and 6-month retention has $120 LTV. With $35 CAC, ratio is 3.4:1, so safe to scale paid marketing”
Related Knowledge
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