What is CAC (Customer Acquisition Cost) for subscription business. How can I calculate CAC correctly. - WooFresh

What is CAC (Customer Acquisition Cost) for subscription business. How can I calculate CAC correctly.

All QuestionsCategory: PaymentsWhat is CAC (Customer Acquisition Cost) for subscription business. How can I calculate CAC correctly.
asked 1 year ago

What is CAC (Customer Acquisition Cost) for a subscription business? How can I calculate CAC correctly?

1 Answers
answered 1 year ago

CAC (Customer Acquisition Cost) refers to a cost in acquiring a customer.

In simple words, the cost which is associated with convincing a customer to buy a product is known as CAC. It is one of the important metrics in subscription or SaaS business.

The CAC should be lower for a profitable business, lower the CAC, higher chances of gaining more profit.

You can calculate CAC by dividing your total cost spent on acquiring customers by the total number of acquired customers.

For example :

if you have spent $200 on acquiring 50 customers then your CAC is –

200/50 = 4.

That means your CAC is $4.

I am sharing some articles link which might be helpful for you in knowing the CAC in-depth.

Regards

Jassie Matthew

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0 Answers
answered 1 year ago

CAC (Customer Acquisition Cost) refers to a cost in acquiring a customer.

In simple words, the cost which is associated with convincing a customer to buy a product is known as CAC. It is one of the important metrics in subscription or SaaS business.

The CAC should be lower for a profitable business, lower the CAC, higher chances of gaining more profit.

You can calculate CAC by dividing your total cost spent on acquiring customers by the total number of acquired customers.

For example :

if you have spent $200 on acquiring 50 customers then your CAC is –

200/50 = 4.

That means your CAC is $4.

I am sharing some articles link which might be helpful for you in knowing the CAC in-depth.

Regards

Jassie Matthew