Why a Low Customer Acquisition Cost (CAC) Isn’t Always a Good Benchmark
Customer Acquisition Cost (CAC) is a key SaaS metric that accounts for how much it costs your company to procure each new customer. The received wisdom is that reducing your CAC is one of the best ways to increase your company’s profitability and likelihood of success. However, this metric calls for discerning judgement. What it tells you about your company will depend on your goals, your business model and needs, and your customer lifecycle. There is no single answer to the