Guide to Customer Acquisition Cost (CAC)
B2B acquisition for marketing professionals
B2B Acquisition CAC
Beyond a simple KPI, a thorough understanding of your Customer Acquisition Cost (CAC) is essential for financial planning, assessing marketing and sales performance, maintaining profitability, and gaining competitive advantage in the B2B sector.
It plays a key role in budgeting marketing and sales expenditures, ensuring profitability by comparing CAC with Customer Lifetime Value (LTV), serving as a KPI to measure the ROI of marketing strategies, guiding strategic changes when needed, and providing valuable insights when compared with industry standards or competitors. Therefore, comprehensive knowledge of CAC is vital for financial planning, maintaining profitability, assessing performance, and gaining a competitive edge.
What You'll learn
This BOFUlab guide will answer your questions about CAC, LTV, ratio, payback, and detail the best strategies to improve your B2B acquisition metrics.
- What is Customer Acquisition Cost (CAC) and how to calculate it
- How to tell what a "Good" CAC is
- The Ideal LTV:CAC ratios for B2B
- Does CAC Payback matter?
- Steps to reduce your CAC and improve your LTV:CAC ratio