LTV-to-CAC of 4.2x on micro, 1.8x on macro

LTV-to-CAC of 4.2x on micro, 1.8x on macro

LTV = lifetime value; CAC = customer acquisition cost.

A subscription box tracked 6-month retention of customers by acquiring tier. n=11k subscribers, cohorted.

Micro-acquired: 4.2x LTV/CAC, 71% month-6 retention
Macro-acquired: 1.8x LTV/CAC, 49% month-6 retention

████████ micro
███ macro

Micro-sourced customers stuck around because they came via trusted, high-fit recommendations; macro brought volume but churned fast. The gap only appeared once retention was tracked, not at signup.

So what: judge tiers on retained LTV, not signup CAC; cheap acquisition that churns is expensive.

Benchmark: micro-acquired LTV/CAC runs 3–5x vs macro 1.5–2.5x.