Customer Acquisition Cost
The total marketing + sales spend divided by the number of new customers acquired.
CAC = (total marketing + sales spend) / (new customers acquired in the period). Healthy SaaS keeps CAC well below LTV (lifetime value). For CLAWVR's $297 product, CAC needs to be <$100 for healthy unit economics.
Related terms
- Lifetime Value — The total revenue expected from a customer across their entire relationship.
- Unit Economics — The per-customer math of a business — LTV vs CAC, margin, payback period.
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