Total cost of acquiring a new customer, including marketing, sales, and onboarding expenses.
Total Sales & Marketing Spend / New Customers Acquired
Lower is better · Unit: currency
How to Improve
Invest in content-led SEO to reduce paid channel dependency. Double down on referral loops and product-led acquisition. Track CAC by channel weekly and kill anything above 2x blended target.
Ehsan's Analysis
MarTech companies at Series A stage are overpaying for acquisition by 40% on average. The winners I advise have shifted 60% of budget to content and PLG, dropping CAC to $180 while competitors burn $500+. Stop funding Google Ads and start funding product-led loops. The math is brutal: every dollar above $300 CAC at this stage destroys 18 months of unit economics.
EJ
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO
Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations · Ex-Microsoft · CMO at FirstWave (ASX:FCT) · Forbes Communications Council
Frequently Asked Questions
What is a good Customer Acquisition Cost (CAC) for MarTech at Series A?
The median Customer Acquisition Cost (CAC) is $509. Top-quartile companies achieve $407. Aim for top-quartile to be competitive.
How does Customer Acquisition Cost (CAC) change by company stage?
Customer Acquisition Cost (CAC) decreases as companies mature. Earlier-stage companies typically see higher values due to smaller scale.
How to improve Customer Acquisition Cost (CAC) in MarTech?
Focus on the primary drivers specific to MarTech. Track weekly with a 4-week rolling average and iterate on the biggest lever.