Mastering your CAC is a startup MUST HAVE!
CAC should be informing all of your strategic decisions
This week I want to hip you to an important startup metric that, frankly, we all should know and love.
That metric? Cost of Customer Acquisition (CAC)
I’ve had students who have seen their profit margins increase up to 67% because they understood and optimized this metric. (that’s a super high margin for six-figure consulting services btw!)
Knowing your CAC not only gives you vital insights into the value of your customers but also helps you steer your strategic decisions about marketing spend, pricing strategies, and long-term business growth.
In this week’s blog, I go over alllll the juice details on how to Calculate CAC, and how to manage the metric over time.
But to get you started on CAC calcs now…
Take a peek at the GIF below for a simplified breakdown with examples and formulas.
Beware: This is NOT a one-time exercise!
You’ll have to revisit your CAC regularly to gauge the effectiveness of your marketing efforts and to identify trends and opportunities for optimization.
Bottom line? Ignorance is NOT bliss when it comes to CAC. You need to know and understand your CAC to make sure every dollar you spend is driving growth that counts 🔥
Bottom line? Ignorance is not bliss when it comes to CAC. You need to know and understand your CAC to make sure every dollar you spend is driving growth that counts 🔥
Want to dive deeper into CAC and how to leverage it for your startup's success?
Check out my latest blog post for a deep dive into each CAC calculation step - it comes complete with examples to guide you through ⬇️
While you’re here, I’d love to hear back from you!
Hit reply and let me know - have you been tracking your CAC on a regular basis? What best practices do you use to make that process more efficient?
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