How to really calculate CAC (Customer Acquisition Cost)

CAC = Total Marketing + Sales Expenses / # of New Customers Acquired , right?
Actually not. There is also a timeline between free to freemium. Are you including salaries? Overheads?
“A customer is a customer, right? Not necessarily. When it comes to calculating CAC, we need to distinguish between new and returning customers. In most organizations there are marketing and sales efforts focused on new customers, and there are marketing and sales efforts focused on retaining or getting customers back.”


Very interesting piece that questions the way CAC is calculated.

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