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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How Much Should We Spend on This Enterprise Sales Initiative?

The sales CAC is not particularly useful for bench marketing because people don't publish it but it is useful to compare your two different distribution channels right. It costs us a dollar ten in mid-market to sell a dollar of ARR it's cost us two bucks in enterprise and that's just the sales CAC alone without messing around with the marketing allocations so look you can do it the full way and just say oh 20% of our marketing is going to enterprise and 80% is to SMB if it makes you feel betterYou can get a segmented CAC as opposed to a segmented sales CAC. If over time it's pretty mature it's got a much higher CAC

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