CAC Calculation Mistakes: The Timing Problem
CAC Calculation Mistakes: The Timing Problem. CAC calculation seems simple but timing errors are common. The wrong approach can make unprofitable ...
Rachel Morrison
SaaS Analytics Expert
Rachel specializes in SaaS metrics and analytics, helping subscription businesses understand their revenue data and make data-driven decisions.
Based on our analysis of hundreds of SaaS companies, cAC calculation seems simple but timing errors are common. The wrong approach can make unprofitable channels look great.
The Timing Mismatch
Proper Time Attribution
What to Include in CAC
Blended vs Channel CAC
Frequently Asked Questions
How do I attribute spend to customers?
Use sales cycle length. If your cycle is 60 days, customers acquired in March came from January marketing spend.
Should I include salaries in CAC?
Yes, include sales and marketing salaries. Some companies also include a portion of executive time spent on sales/marketing.
Disclaimer
This content is for informational purposes only and does not constitute financial, accounting, or legal advice. Consult with qualified professionals before making business decisions. Metrics and benchmarks may vary by industry and company size.
Key Takeaways
Accurate CAC requires proper timing attribution. Without it, you cannot make good decisions about where to invest in growth.
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