Loading...
Loading...
Calculate how much it costs to acquire each new customer.
A good CAC should be significantly less than customer lifetime value (LTV), ideally LTV:CAC ratio of 3:1.
Include advertising spend, marketing salaries, sales team costs, software tools, and creative production.
Optimize ad targeting, improve conversion rates, leverage organic marketing channels, and nurture customer referrals to reduce overall acquisition spend.
A healthy SaaS business typically maintains a 1 to 3 CAC to LTV ratio, meaning each customer generates three times what it costs to acquire them.