
The Role Forward: A Strategic Finance Podcast
CAC Masterclass: The SaaS CFO, Ben Murray
May 29, 2022
32:17
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Quick takeaways
- The CAC profile in SaaS businesses includes multiple metrics that provide insight into sales and marketing efficiency, such as gross expenses, unit cost of CAC, CAC payback, CAC ratio, and LTV to CAC.
- To obtain reliable CAC metrics, it is crucial to include fully burdened costs for sales and marketing, align the CAC calculation with the sales cycle, and correctly allocate expenses between new and existing customers.
Deep dives
Understanding the CAC Profile
The CAC profile is a comprehensive way to analyze customer acquisition costs in a SaaS business. It includes multiple metrics that provide context and insight into sales and marketing efficiency. By looking at various metrics together, such as gross expenses, unit cost of CAC, CAC payback, CAC ratio, and LTV to CAC, companies can gain a deeper understanding of their overall performance and identify areas for improvement.
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