SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders  cover image

CAC and CAC Ratio

SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders

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The Importance of Customer Acquisition Cost

I think cacc as a standalone metric has very little use because it's not in context of how much ARR that you brought it etc. So look I'll contradict you in one pretty specific case which is the more your deals all look like each other the more you can do unit based right just say that every deal you sell is ten thousand dollars okay then why not say how much does it cost to acquire that customer 15,000 okay my cacc well my cacc ratio will be 1.5 I'll get to that in a minute but to the extent that every customer looks like every other customers I think it makes sense.

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