As a growing SaaS company every expense you make needs to be scrutinised, because there are several different channels you can invest in in order to generate sales. One of the traps that SaaS companies should avoid is spending money on low ROI activities. A great metric to take as the rule of thumb while determining the ROI is the customer acquisition cost (CAC).
CAC, or customer acquisition cost, is a crucial business metric to assess the resources you need to attract new customers and continue your business growth. In a nutshell, if you want your business to expand its customer base and still make a profit, then it is important to understand what CAC entails, its significance, and how your team can calculate it.