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Customer Acquisition Cost (CAC)
Manage episode 394022073 series 3531109
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Understanding and Maximizing Your Customer Acquisition Cost (CAC) for Business Growth
In this episode, Vince Crisler discusses the importance of tracking the cost of customer acquisition (CAC) for businesses, particularly SaaS and MSPs (Managed Service Providers).
They delve into calculating CAC, including factors such as marketing, onboarding, demonstrations, and customer acquisition through different channels. They also emphasize the significance of comparing CAC with customer lifetime value to maximize profitability.
Vince also highlights the impact of service delivery on the CAC, warning against pitfalls of rapid expansion without adequate onboarding resources. The balance between headcount, onboarding, and customer retention is noted as a critical point for maintaining profitability and a sustainable customer lifespan.
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