What Does CAC Mean
Jul 16, 2023•3 min
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Episode description
In episode #3, I discuss CAC, or Customer Acquisition Cost. CAC can be gross dollars or a unit cost. Screw up your CAC calculation and it affects CAC Payback Period and your Cost of ARR. CAC is fundamental to your metrics reporting package.
Highlights:
- CAC can be dollars or a unit cost
- CAC flows to your CAC Payback and Cost of ARR
- What’s your prize? Logos, users, brands, etc.
- You must allocate gross CAC dollars
- Align CAC measurement to your sales cycle
- Fully burdened sales and marketing dollars
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