Customer Acquisition Cost (CAC)

cac

What is CAC?  Customer Acquisition Cost, or CAC, is the cost of acquiring a new customer in your business. The metric is used in a variety of industries but is perhaps most common in SaaS and other subscription businesses.  It is essential in many resource allocation decisions. Why calculate CAC?  Having a deep understanding of…

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Calculating Churn in a SaaS Business

How do you calculate churn?

What is Churn? While there are many variations of churn, churn is always a measure of attrition or loss and is the most widely tracked and discussed SaaS and subscription metric. Churn can measure lost customers, contracts, ARR, MRR, GAAP revenue, contract value, or bookings. Churn is typically expressed as a rate or a ratio…

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