How do you react when LTV:CAC suddenly gets worse?
Use a decision walk to trace whether a weaker LTV:CAC ratio came from margin, retention, or acquisition assumptions.
The headline ratio LTV:CAC dropped sharply, but the ratio alone cannot tell you whether the value side fell or the cost side rose. You need to reopen the assumptions instead of arguing from the summary. Ratio decomposition Value side -> Cost side -> Fresh evidence Check whether customer value fell before assuming acquisition simply got worse. Shortcut Blame marketing first The fix matches the driver, not the panic. Ratios compress. Good operators decompress before acting. 01 Value 02 Retention 03 Cost Decision 1 You find that support hours per new account rose 60% after a product change.
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