CAC (Customer Acquisition Cost)
Total sales and marketing spend in a period divided by the new customers won in it. Salaries, tools, agencies, ads and data all belong in the numerator, and leaving out headcount is how CAC usually gets flattered. The figure only means something next to LTV and payback period, because large contracts can justify a high CAC.
More terms from Metrics & KPIs
- LTV (Customer Lifetime Value)
- ARR (Annual Recurring Revenue)
- MRR (Monthly Recurring Revenue)
- ACV (Annual Contract Value)
- NRR (Net Revenue Retention)
- Churn Rate
- Conversion Rate
- CPL (Cost per Lead)
- ROI (Return on Investment)
- GRR (Gross Revenue Retention)
- Expansion Revenue
Growth without the headcount.
Knowing the vocabulary is the easy part. In a free 30-minute call we look at what it would look like running on your stack.
Book a Call