CAC is useless
The Revenue Formula
00:00
How to Track Your Customer Acquisition Costs
The customer acquisition costs, gross margin adjusted, over lifetime value is basically newly acquired and then divided by your average churn rate. The reason why people came up with that is because it basically takes all the criticism away. And obviously finance people love having the whole go-to market summed up in one number that they can track and goes up and down. Who doesn't love it are the people that actually need to deliver that number? So the operators.
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