Customer Acquisition Cost

Category
Series B Key Challenges
Business and Financial Planning & Analysis
Series B Team’s org
MarketingMarketing
Market Practices

Minimum 3x less than your

Critical
❓
CAC is a business metric that determines how much it'll cost your organization to attract new customers.
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From Revops Squared 2022 SaaS Benchmark:

New CAC Ratio tells you “how much Sales and Marketing Expense” is required to add $1 ARR from new name customer acquisition.
New CAC Ratio tells you “how much Sales and Marketing Expense” is required to add $1 ARR from new name customer acquisition.

Additional resources

Lifetime value (LTV) / CAC