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
Build a referral engine that turns every customer into an acquisition channel. Invest in bottom-of-funnel content that captures high-intent search traffic. Track blended CAC weekly and set alerts when it exceeds 2x your target.
Ehsan's Analysis
MarTech companies at Series C stage are sitting on a goldmine of unrealized improvement in this metric. The gap between median and top-quartile represents millions in enterprise value. I have seen 15 companies close this gap in under 6 months by treating it as their primary OKR. The ones who fail treat it as a dashboard metric. The ones who win treat it as an operating principle.
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 C?
Median is $371. Top-quartile achieves $297. Aim for top-quartile to attract investors.
How does Freemium model affect Customer Acquisition Cost (CAC)?
The Freemium business model impacts this metric through pricing mechanics and customer behavior patterns. Benchmark against companies with the same model for accurate comparison.
How to improve Customer Acquisition Cost (CAC)?
Focus on the primary driver for your stage. At Series C, the biggest lever is usually operational efficiency and product-market fit refinement.