Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

For Entrepreneurs.com
Growth StrategyMarket Research🕑 Reading Time: 0 Minutes

David Skok has noted that there is a problem with using this formula, as you may have several expensive people in the team that should scale to handle a larger number of customers as you grow. In this case, your CAC will be too high. David suggested making a very simple adjustment to the Sales & Marketing expenses to take only a portion of those salaries and expenses in the early days. This will provide a better indication of how CAC will look in the future when you are at scale.

 

Developing Market Research Personas in Edtech
EdTech Market Research

Why Market Research Personas Matter in EdTech The EdTech industry is a dynamic and multifaceted landscape, teeming with opportunities to revolutionize education through technology. To navigate this complexity, understanding the […]

🕑 Reading Time: 24 Minutes