Ultimate Guide to CAC Part 1: Understanding CAC

👋 Hey, it’s Sundar! Welcome to a paid article of experiMENTAL → a weekly newsletter on Marketing Strategy and Science in Consumer Tech

A quick word from the sponsor

Marketing ideas for marketers who hate boring

The best marketing ideas come from marketers who live it. That’s what The Marketing Millennials delivers: real insights, fresh takes, and no fluff. Written by Daniel Murray, a marketer who knows what works, this newsletter cuts through the noise so you can stop guessing and start winning. Subscribe and level up your marketing game.

Sign Up Free

Why you’ll want to read this

CAC is the first metric that every Marketer learns and is often painted as “Oh, it’s simply Customer Acquisition Cost”. But, over my career, I’ve measured CAC 15 different ways and every time I talk to a marketer about CAC they have a concern or question about it. CAC is so much more nuanced than people give it credit for.

So, I’ve put together the ULTIMATE guide to CAC in a 3 part series.

Part 1: Understanding CAC (definitions + frameworks) ← Today

1. Why CAC still matters

2. How to properly calculate CAC

3. The 4 types of CAC

Part 2: Using CAC (application + strategy)

1. CAC as a decision-making tool

2. Benchmarking CAC

3. How to report on CAC

4. Alternatives to CAC

Part 3: Improving CAC (tactics + future-proofing)

1. Why CAC changes over time

2. CAC over the lifecycle

3. Levers to improve CAC

I think it is by far the best and most complete resource out there on CAC bar none. So much so that I am putting my money where my mouth is 👇️ 

Now that you know how confident I am, Part 1 here we come!

Get access to the rest of this article...