CAC Payback Basics: What It Is, How to Calculate It and Why It Matters
OpenView Labs
JUNE 25, 2019
CAC encompasses all of the sales and marketing costs that a business has to shell out to land a single new customer (calculated as total sales & marketing expense in a period / total customers acquired in a period). It’s common to see a reduction in efficiency as a business scales, markets saturate, and competition increases.
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