CAC
Customer Acquisition Cost
The cost of convincing a potential customer to buy a product or a service. [1] [2] [3] [4] [5]
With software, customers usually prefer the self-service approach; so lower CAC ultimately means you can spend more on product; remove human touch fom the sales process as much as possible.
[1] Retrieved May 21, 2021, from https://neilpatel.com/blog/customer-acquisition-cost/
[2] KAPLAN, S.N., and STRÖMBERG, P. 2004. Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. . https://doi.org/10.1111/j.1540-6261.2004.00696.x
[3] Maxwell, A. L., Jeffrey, S. A., & Lévesque, M. (2011). Business angel early stage decision making. Journal of Business Venturing, 26(2), 212–225. https://doi.org/10.1016/j.jbusvent.2009.09.002
[4] Rea, R. H. (1989). Factors affecting success and failure of seed capital/start-up negotiations. Journal of Business Venturing, 4(2), 149–158. https://doi.org/10.1016/0883-9026(89)90028-1
[5] Klipfolio.com. Retrieved May 21, 2021, from https://www.klipfolio.com/resources/kpi-examples/saas/customer-lifetime-value-to-customer-acquisition-cost
[6] Retrieved May 21, 2021, from https://www.profitwell.com/recur/all/calculate-and-reduce-cac
[7] Retrieved May 21, 2021, from https://www.sage.com/en-us/blog/5-kpis-to-measure-small-business-growth/