How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
“You have to spend money to make money.”
This seemingly good-natured advice has spelled doom for millions of businesses worldwide.
While it’s true that businesses occasionally need to spend more upfront to validate their idea, doing so with a complete disregard for unit economics can be fatal.
That’s why Customer Acquisition Cost (CAC) is such a critical metric. It’s the single most important indicator to prevent reckless spending. In this post, we’ll show you how to calculate CAC, plus share a few tips to help you maintain it at a healthy level.