TMT (Tech, Media & Telecom)
How do you calculate CAC and CAC payback? A company spends $600k of sales and marketing in a quarter and lands 100 new customers, each paying $500 per month at an 80% gross margin.
Model answer
CAC = sales and marketing spend / new customers acquired = $600k / 100 = $6,000 per customer. CAC payback is the months needed to recover that on a GROSS PROFIT basis: each customer generates $500 x…
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