The Metrics Brothers (fka SaaS Talk) cover image

Product Led Growth and the impact on Customer Acquisition Cost

The Metrics Brothers (fka SaaS Talk)

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How to PLG Motions Impact Customer Acquisition Costs

There was a report about higher sales and marketing costs for G companies after hitting a key inflection point of around 50 million in revenue./nWhen calculating customer acquisition cost (CAC), it's important to consider the cost of acquiring each paid user rather than free users./nCAC should be recalculated after three, six, and 12 months to track organic and viral growth and assess changes in customer status./nIn a land and expand model, the distinction between 'land' (initial user) and 'expand' (subsequent users) affects CAC ratios and should be carefully considered.

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