In case you didn't already know, CAC stands for Customer Acquisition Cost. If you didn't know that before now, no shame. AlphaStack is a safe space for founders, and this is an important one to actually understand, not just nod along to in meetings.
So let's run you through it real fast. CAC tells you exactly how much it costs you to gain a single customer or client, and once you know that number, a lot of other decisions in your business start to make a lot more sense.
The formula is simple. Take all of your marketing and advertising expenses over one month, ad spend, mailers, lawn signs, email or text software, anything you're spending to earn the attention and trust of prospective customers, and divide that total by the number of customers or clients you acquired that same month.
That's it. That's your CAC.
You can run the math yourself if you're comfortable with numbers, or let us do the heavy lifting for you with our CAC-ulator.
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Resources
Find out exactly how much it costs you to acquire a single customer. Enter your monthly marketing spend and new customers and we do the math.
Try it now →Estimate what your business is worth using Seller's Discretionary Earnings and an industry-based multiple. Enter your numbers and we handle the rest.
Try it now →New resources will be added here as AlphaStack grows.
Stay tuned