CAC Payback Period | One of My Favorite Metrics

In episode #4, I discuss the meaning of the CAC Payback Period. It’s a top operator and investor metric. Cash must be allocated wisely, and the payback determines how long your capital is tied up in new customer acquisition. - Top operator and investor metric - Measures the months to pay back the upfront customer acquisition cost - CAC payback inputs (cohort ARPA, recurring gross margin, CAC) - What’s your prize? Logos, users, brands, etc. - It’s common to gross-margin adjusted payback - What margin to use - Segmenting your metrics Join Ben’s SaaS community here: https://www.thesaasacademy.com/offers/ivNjwYDx/checkout Follow Ben on LinkedIn: https://www.linkedin.com/in/benrmurray Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page