Explain the difference between long-run customer economics and how quickly the business recovers acquisition cash.
A good ratio can still create a bad cash story. The ratio view LTV:CAC tests whether the value from a customer relationship is materially higher than the cost to win it. It is your long-run viability screen. If the ratio is weak, scaling usually makes the problem bigger. The speed view Payback focuses on timing. Even a healthy customer can hurt if gross profit takes too long to recover acquisition spend. In SaaS, slow recovery deepens the cash trough because the business funds growth before revenue catches up. Why both belong in the room Teams that watch only LTV:CAC can…
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