FA-301b · Module 3

Portfolio Mix Management

3 min read

The blended LTV/CAC ratio is a function of the segment mix. A company acquiring 70% enterprise and 30% SMB has a different blended ratio than one acquiring 40% enterprise and 60% SMB — even if the segment-specific ratios are identical. Mix management is the discipline of intentionally steering the acquisition mix toward the segments that maximize portfolio-level unit economics.

Blended LTV/CAC by Acquisition Mix:
──────────────────────────────────────────────────────
Scenario        Ent.   MM    SMB    Blended LTV/CAC
──────────────────────────────────────────────────────
Current mix:     30%   45%   25%        5.4x
Shift to MM:     20%   60%   20%        5.8x
Shift to Ent:    45%   40%   15%        5.9x
Shift to SMB:    20%   35%   45%        4.5x
──────────────────────────────────────────────────────

Segment LTV/CAC:  6.6x  6.4x  3.8x

Shifting 15pp from SMB to enterprise
improves blended ratio by 0.5x.
That is a portfolio-level decision
with no change to segment economics.

Do This

Set target acquisition mix by segment based on LTV/CAC optimization
Track actual mix vs. target mix monthly and adjust marketing and territory allocation
Model the blended impact before approving budget shifts across segments

Avoid This

Let the mix drift based on which deals happen to close without intentional steering
Optimize each segment independently without considering the portfolio impact
Grow the SMB segment for volume without calculating the blended ratio impact