What is Customer Acquisition Cost? How do you calculate this metric? And is a CAC of $7,700 considered high or low?
This is the third episode of Foundations – a series where we discuss the basic concepts and principles from the startup world. This podcast will help you to speak the software “language” fluently and approach it with the right context. Whether you are new to this world or want to deepen your understanding of it – this series is for you.
*Some of you might have noticed that we changed the series name from Fundamentals to Foundations – we explain all about it in the beginning of the episode. 🙂
In this week’s episode Lior Krengel and Eran Zinman talk all about the CAC metric, and discuss the different challenges in calculating CAC, such as which timeframes we should measure it and if it is possible to include virality into the equation.
At the beginning of the episode we answer questions you sent us after the previous episode and we want to do this next time as well. The next episode is about LTV – Lifetime Value. Have any questions about LTV or CAC? Send them to us and we’ll make sure to answer them in our next episode.