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…
Read MoreCalculating Churn in a SaaS Business
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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