How to Calculate Your Customer Acquisition Cost (CAC) in 3 Easy Steps!
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- เผยแพร่เมื่อ 11 ก.ค. 2024
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Do you know your real cost of getting a customer? In this video, I’m going to teach you how to calculate your Customer Acquisition Cost (CAC) with an easy 3 step equation.
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Twitter: @danmartell
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Next level knowledge.
All killer no filler.
Much appreciated Dan
@@MrTraveller. can I borrow the phrase "All killer, no filler" from you?
@@jimmcmonagle2360 Yes, of course Jim. We should all work together. I grew up in the same small town that Dan did, when we were kids. Though I have been living here in Taiwan for the last 9 years running my Business. Where are you from or based if you don’t mind me asking. Robin M. 🇨🇦🇹🇼
@@MrTraveller. I am in the Philadelphia/NYC corridor. It's difficult to imagine Dan as a kid, as you say. He seems like the kind of guy who would have always been a full-grown adult since his youth! Yet he seems young at the same time!
At 29-years-old, I pitched investors only to find out I’d calculated my CAC (Customer Acquisition Cost) incorrectly. I looked like a fool! Here’s how to properly calculate it.
I'd never heard of Fully Loaded CAC before - thanks for saving me potential embarrassment in the future!
Great vid!
Added this to my notes ;)
This was so helpful! thanks Dean! I'm gonna go calculate my CAC!
🙌🏻
Thanks bro
Love it!
Thanks!!
Wait so you only subtract the overhead of sales/marketing expenses such as salaries/lease space? You don’t subtract payroll of all the employees? Got a little confused there.
What is a good CAC number? How do you know it your CAC is good or too high?
I've been trying to get a good answer to this as well. I've heard for SaaS it should be no higher than 30% as long as your net retention is 125% or higher. (net retention would be renewal rate plus growth in ARR). If I were advising a company I would consider the upward growth potential of a new client in setting a target for CAC. For example if there is limited growth potential, meaning you sign everyone up at once and the growth is about the same every recurring renewal then you should target a much lower CAC than 30%.
Can you measure CAC on a startup
I think a few examples would have helped
my CAC can fluctuate? damn right