Customer Acquisition Cost (CAC): A Critical Metrics for Founders
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Customer Acquisition Cost (CAC): A Critical Metrics for Founders

Your customer acquisition cost is an important metric used to track your company's success. It is the sum total of the amount that it takes your business to acquire a customer, including time from your sales representatives and marketing and advertising expenses.

Discuss with your investors your strategy for improving LTV and CAC over time. You can justify prioritizing product or service investments if you can point to the value payoff as a result. As your company continues to grow you will want to continue to tweak and improve your acquisition costs and lifetime value.

In an age where investors are more focus on profitability and sustainability than ever before one of the first places to look is your CAC and LTV.

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