SaaS & Subscriptions / Marketing

Customer Acquisition Cost CAC

What it cost, on average, to win one new customer.

The fork, why two teams get different numbers

Three definitions with materially different numbers. BLENDED CAC divides all sales-and-marketing spend by ALL new customers, including organic/word-of-mouth, the flattering number founders quote. PAID CAC divides only paid-acquisition spend by customers attributed to paid channels, the number that tells you whether ads work. FULLY-LOADED CAC adds S&M salaries, commissions, tooling, and overhead, not just media, the number finance and investors expect. There is also a scope fork: new-logo CAC (acquisition only) vs a CAC that includes the cost of landing expansion. Marketing prefers blended and paid; finance insists on fully-loaded; the gap between blended and fully-loaded paid CAC can be 3-5×.

The trap

Timing mismatch.

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Reference: SaaS operating-metric convention (no single standards body) · FASB ASC 606 (for capitalized commission treatment · ASC 340-40)