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LTV:CAC Ratio · Government

LTV:CAC Ratio for Government.

The single most important unit-economics metric.

Modernization that respects the mission.

Finance & Strategy · Government

Why government operators use the ltv:cac ratio.

Calculate the ratio of customer lifetime value to acquisition cost. Industry benchmark is 3:1 — below that, you're subsidizing growth; above 5:1, you're probably under-investing in acquisition.

Public sector and government contractor work requires senior advisors who respect the mission, the constraints, and the procurement reality. SAZ partners with municipal, provincial, and federal teams on strategy, AI adoption, and digital transformation — and with contractors on capture, delivery, and ops.

Benchmarks

What good looks like — typical ranges to compare against.

< 1×
Losing money on every customer
1–3×
Recovering acquisition — but slow
3–5×
Healthy — keep scaling
> 5×
Likely under-investing in acquisition
The formula

How ltv:cac ratio is calculated.

LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost
Industry context

What changes when ltv:cac ratio is applied to government.

Modernization under procurement constraints

AI adoption with appropriate governance

Citizen experience and digital services

Vendor and contractor management

Run the numbers

Open the ltv:cac ratio.

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Open LTV:CAC Ratio
LTV:CAC Ratio · Government

Want a senior partner to interpret your results?

Email info@Sedighi.ca or call (604) 632-4959. A senior partner responds within one business day.

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