The LTV:CAC ratio is a measure utilized to evaluate the lifetime value of a customer in comparison to the expenses incurred in acquiring that customer. For e-commerce businesses, this ratio is a crucial metric that can help determine the effectiveness of their marketing strategies and customer acquisition costs. A high LTV:CAC ratio suggests that the lifetime value of a customer is greater than the cost of acquiring that customer. By emphasizing the enhancement of LTV:CAC, businesses can advance their profitability and potential for growth.