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How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)

ConversionXL

That’s why Customer Acquisition Cost (CAC) is such a critical metric. That would mean the 1100 new customers in March are the result of February’s acquisition cost. The freemium version influences acquisition of new users. This will help you attribute the conversion to the correct acquisition cost. The key takeaway?

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

This is misleading because in a recurring revenue model, Customer A is much more valuable to the business (assuming typical churn rates) as they will likely generate $360,000 of revenue for the business with renewals over that same three year period. Cashflow is the other key metric. Philippe Botteri. Bessemer SaaS Law #2.