Got a solid grasp on your CAC and Payback Period? 🧐 Customer Acquisition Cost (CAC) is a crucial metric to grasp, yet it can be layered with complexities and nuances. However, it’s one that every tech founder needs to be deeply familiar with. It’s not just about knowing the cost; it’s also about mastering your CAC payback period - the time it takes to recover those acquisition costs to drive sustainable and scalable growth. As Remco Marcelis, CEO at Standard Ledger, puts it: “As you’re optimising your business for profit, you want your CAC payback period to get better and better.” Our financial storyteller, Stian Overdahl, had an insightful conversation with Remco and Dilhan Wickremanayake, co-founder at gathera, where they explored the challenges founders face when it comes to mastering CAC and payback periods, as well as hearing their experiences and perspectives on both. Remco highlights the importance of understanding your CAC payback. Shorter payback periods often indicate a strong product-market fit, while longer paybacks may expose inefficiencies. Accurate tracking is essential - overlook costs like onboarding, and your numbers could be way off. Of course, even with a solid strategy in place for acquisition, external factors can disrupt your plans. Dilhan from Gathera, experienced this firsthand when new competitors entered the market and spiked their ad costs. However, instead of getting derailed, his team adapted by refining their product lineup to stay competitive. Read more about Remco and Dilhan's thoughts and experiences, as well as other insights on CAC and payback periods (with some helpful resources for further reading) 👉 https://lnkd.in/gtTHEjEm
Great to speak to Stian Overdahl, getting CAC right is crucial to scaling any business!
Read here! https://www.tractorventures.com/post/why-knowing-your-cac-inside-out-is-key-to-growth