Strategy
CAC
Customer acquisition cost.
Definition
Total sales + marketing spend divided by new customers acquired in the same period.
Real example
$40k marketing / 200 new customers = $200 CAC. Compared to $720 LTV, that's a healthy 3.6x LTV/CAC.
Customer acquisition cost.
Total sales + marketing spend divided by new customers acquired in the same period.
$40k marketing / 200 new customers = $200 CAC. Compared to $720 LTV, that's a healthy 3.6x LTV/CAC.