customer acquisition cost
also referred to as: cac
114 statements across 112 episodes · 31 bullish · 5 bearish · 110 people on the record · first statement Feb 25, 2016 by Nick Kneuper · across every show →
Everything said about customer acquisition cost, oldest first
Feb 25, 2016
Apr 3, 2016 positive
Apr 4, 2016 positive
Jul 13, 2016 positive
Jul 28, 2016 neutral
Aug 19, 2016
Fredrickson: Stowaway Targets $40-$50 CAC and $1,000 Customer Lifetime Value
“Keep in mind, this is based off of, say, the idea of a CAC of 40 To 50 dollars, so let's just round it to 40, and knowing that I want to make a thousand bucks off of this woman over a lifetime, and that means having the best possible products and making sure t…”
Sep 12, 2016 neutral
Sep 29, 2016
Nov 26, 2016 bullish
Dec 3, 2016 neutral
Dec 17, 2016 positive
Feb 2, 2017
Feb 27, 2017
Apr 12, 2017 positive
Mader: Businesses Must Assign Fully Loaded CAC to SEO Content Campaigns
“Very often people say, is there, you can only assign CAC to something on which you're spending money, like an advertising campaign, but you should also do the same thing on your SEO campaigns. Who's actually writing the content.”
Apr 12, 2017 negative
May 30, 2017 positive
Jun 17, 2017 neutral
Scaling ad spend within the eBay seller niche will degrade CAC
“We are laser focused on making the lights of eBay seller much easier, but you know, there's an X amount of eBay sellers out there. So yeah, Even if you want to pour in more money, we will lose the focus in terms of conversion. I mean, our CAC will go up. So we…”
Jul 3, 2017
Jul 4, 2017 positive
Wille: Klipfolio maintains a $700 to $800 customer acquisition cost
“So CAC is still around 700 dollars, 700 or 800 dollars. So we're still running very, very efficiently. So LW to CAC is still relatively healthy, although that's come down a little bit as well as we spend more on advertising. Sure. And then our CAC payback peri…”
Jul 10, 2017 positive
Aug 8, 2017 positive
Sep 9, 2017 positive
Oct 5, 2017 neutral
Nov 4, 2017 neutral
Nov 5, 2017
Nov 27, 2017
Hossain: SaaS companies under $10M ARR typically see 12-to-18-month payback
“You want to be able to acquire in SAS a customer that's going to pay back over 12 months, ideally. At this stage, a little bit earlier you know you know, we're under ten million, I mentioned ARR, so typically, you know, if you're 12 months, you're doing really…”
Dec 16, 2017 neutral
Feb 26, 2018
Carson: Standard CAC to LTV is a vanity metric without gross profit
“We think people who focus on CAC to LTV is, it can be a vanity metric period because you're not actually focusing on, on gross profit LTV. So actually how much, Profit are you driving the LTV and what is the fully loaded CAC, which means you got to include you…”
Mar 1, 2018 bullish
Dickerson: Upfront front-end sales reduce net CAC to effectively zero
“Our all-in cost to acquire customers is about a 130 dollars at this point. But like Russell said, we don't really even look at it that way because that, that upfront media spin that last month was about a 130. So that upfront media spin that was really paid ba…”
Mar 3, 2018
Mar 6, 2018 neutral
Karnjanaprakorn: Consumer SaaS charging $5-$20 monthly sees $10-$50 CAC
“I think for our price point, for any consumer SaaS description business, you'll see, you know, CAC rate from anywhere from 10 to 50 dollars. For a price point anywhere between let's say five and 20 dollars per month. So let's say we're within that range.”
Mar 16, 2018 negative
Carlson: Non-SaaS public investors often misunderstand CAC and payback periods
“Oftentimes investors don't understand when we get to the point where we're talking about our CAC and LTV ratios and things that I share with you. You know, there's strong arguments for investing, but then you've got longer payback periods than maybe an investo…”
May 3, 2018 negative
May 28, 2018 neutral
Nelissen: Prezly's fully weighted CAC is around $7,000 to $8,000
“So like I would say right now it's around seven to eight K fully weighted. Yeah. Fully weighted. So including salaries and like, but there's a really big difference in like self-service client and enterprise clients, which are our most important segments.”
Jun 5, 2018
Jun 10, 2018 neutral
Jun 21, 2018
Jun 28, 2018 neutral
Aug 3, 2018
Latka: Highly profitable low-CAC growth channels are honeypots that inevitably degrade
“Everyone thinks you find a growth channel where the CAC is one third of the LTV, and it's just going to exist forever. The fact of the matter is, they don't. These are all honeypots, and you can milk the honeypot for a while, but eventually competitors move an…”
Aug 27, 2018 neutral
Oct 2, 2018
Oct 6, 2018 neutral
Nov 7, 2018
Nov 8, 2018 positive
Nov 9, 2018
Nov 17, 2018
Nov 24, 2018
Dec 15, 2018 neutral
Dec 19, 2018 positive
Jan 26, 2019 neutral
Feb 18, 2019 neutral
Mar 6, 2019 positive
Mar 20, 2019 neutral
Oil and Gas Analytics' customer acquisition cost is $5K to $50K
“Our lowest cost of bringing in a customer so far has probably been in like the five K range total. It's happened, you know, very quickly local customer. On the outside we haven't invested more than 50 yet in bringing a customer on board.”
Apr 15, 2019 neutral
Apr 16, 2019
Apr 18, 2019 neutral
Soffer: Customer success and onboarding costs do not belong in CAC
“Where we've gotten better, we've gotten a lot better at sort of the onboarding process, the customer success process. I don't, Put those folks as part of CAC. I put them as, because they do they're not just about acquisition of the revenue. They're really abou…”
Apr 22, 2019 neutral
May 4, 2019 neutral
May 21, 2019
Jun 2, 2019 positive
Jun 25, 2019 neutral
Jun 27, 2019
Jun 28, 2019 positive
Jul 22, 2019 negative
Schneider: LTV and CAC Metrics Are Confusing and Excessively Subjective
“CAC and LTV. I I've seen five different calculations and I've talked to multiple different investors on that. And we tend to find that metric is confusing and requires allocation of marketing spend and all that sort of stuff that, that is subjective.”
Aug 26, 2019 neutral
Rossi: Buzzsprout pays $40 affiliate CAC, splitting $20 to each party
“I think it's 40 dollars that we pay because we give 20 dollars to the affiliate and we give 20 dollars to the person that was referred through the affiliate. So that way they have some incentive to give to, you know, Hey, if you sign up, you'll get 20 dollars …”
Aug 29, 2019
Sep 2, 2019
Oct 8, 2019
Nov 2, 2019
Dec 17, 2019 neutral
Dec 23, 2019 neutral
Feb 7, 2020 neutral
Feb 10, 2020 positive
Feb 18, 2020 positive
Intermix Maintains Sub-$10,000 CAC and Two-Month Sales Cycle
“Our CAC at this point is, you know, south of 10 of 10 K. Our, you know, the nice thing about our business is that we can sell it over the phone. Typically customers will make a decision. There's a free trial and they'll make a decision in about two weeks two t…”
Mar 11, 2020 positive
Jednak: ClientPoint reports $7,000 CAC and $35,000 gross margin-adjusted LTV
“Aggregate total lifetime, you know, value, you know, lifetime you know, value, you know, calculated obviously gross margin, not top line revenue. So calculated the right way is about 35,000 dollars on average across everyone from our tiniest to our biggest. So…”
Mar 22, 2020
Boufaden: Partner CAC Must Include Acquisition and Enablement Costs
“The cost of acquisition of the customer base of that partner is really, you need to take into account the costs That you had to pay to acquire that partner. And then the costs that you put on top of that when you were helping the sales team convert the custome…”
Mar 30, 2020 neutral
Apr 1, 2020 positive
Targeting multi-location franchises reduced customer acquisition costs to $300
“When we kind of dug into it, what we found is any customer that had more than three employees did more than 350,000 dollars a year, had more than one location or had to manage inventory. They didn't turn as much. So we were able to take that and drive the CAC.…”
May 5, 2020
May 12, 2020 neutral
TeleSense Spends $5K to $10K to Acquire Large Enterprise Customers
“So I think currently if I have to compute, you know, how much I'm paying my five guys And how many sales are they bringing in so that I can compute a CAC? It's probably going to be, you know, five or 10,000 dollars per large customer, which is probably higher …”
May 12, 2020 negative
May 29, 2020 positive
Jun 26, 2020 positive
Jul 16, 2020
Jul 18, 2020 positive
Jul 21, 2020
Aug 5, 2020
Latka: Early-Stage CAC is Non-Engineering Payroll Divided by New Customers
“I mean, early stage SAS, the best way to calculate CAC is to take everyone who's not an engineer. So anyone focused on marketing, product sales, take all your salaries monthly, and then divide that by number of new customers you're getting each month.”
Aug 18, 2020 positive
Aug 21, 2020 neutral
Oct 3, 2020 neutral
Oct 8, 2020 neutral
Nov 4, 2020 neutral
Nov 29, 2020
Dec 10, 2020
Feb 21, 2021 positive
Mar 5, 2021
Mar 12, 2021
Apr 19, 2021 neutral
Jun 2, 2021 positive
Jul 10, 2021 neutral
Jul 13, 2021 positive
Indirect Channel Distribution Trades Gross Margins for Lower Upfront CAC
“For indirect, what typically happens if you do it well is your CAC will go down, but you're shifting that CAC to success driven revenue share. So it's a more efficient use of a cost of capital. So your CAC goes down, your gross margins go down too, because you…”
Jul 28, 2021 neutral
Oct 11, 2021 positive
Dec 19, 2021
RentRedi Initially Spent $1,000 to Acquire a $9-Per-Month Customer
“Going back to the beginning of last year we're, you know, spending upwards of a thousand dollars a customer to add To get it, to get a nine dollar a month customer.
Yep.
And as that year went on, I mean, we were able to drop that customer acquisition cost to, …”
Feb 8, 2022 positive
Feb 21, 2022
Apr 27, 2022
Aug 24, 2022 neutral
Apr 8, 2023 neutral
May 4, 2023 neutral
Jun 30, 2023
Van Voorhis: A 1:1 SDR-to-AE ratio increases CAC by idling expensive AEs
“SDRs are cheaper than AEs. So when you have the one-to-one ratio, you're, this is not full CAC, but it is impacting CAC. Your CAC is increasing because you have higher more expensive employees who are sitting around not doing demos.”
Sep 21, 2023 neutral