Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts required to acquire a customer. This is one of the determining factors of whether your SaaS company has a viable business model that can generate revenue by maintaining low acquisition costs as it scales.
The goal of your company should be a steady decline in CAC, not only because it leads to an increase in revenue, but also because it is a sign of good health for your marketers,sales and customer service departments.
Many web companies can participate in targeted campaigns and track consumers as they move from interested customers to loyal customers. In this environment, the CAC indicator is used by both companies and investors.
We have reached the end of the content! Summing up, while at the growth stages it is acceptable to have a relatively high CAC to take a place in the market (and, consequently, to reap greater benefits later), the cheaper you acquire each customer, the faster you will grow.
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