Customer Acquisition Cost (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? Churn is the percentage rate at which SaaS customers cancel their recurring revenue subscriptions. Plain and simple. While there are many variations of churn as a phenomenon in SaaS companies, it is typically separated into a gross churn rate and a net churn rate. So what’s the difference between the two? Gross…

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