menu
techminis

A naukri.com initiative

google-web-stories
source image

Saastr

1M

read

63

img
dot

Image Credit: Saastr

Your Core CAC vs. Your Expansion CAC: One Trophy, But Two Goals

  • Startups often treat every customer the same for customer acquisition cost (CAC) purposes, which is a mistake when scaling.
  • As startups expand into new market segments, new verticals, and new buyers, the CAC will be higher in those areas.
  • A framework is suggested where 80% of new customers should hit sustainable CAC goals, while 20% should break even to enter new markets.
  • It is important to give new market segments 24 months to reach the same CAC efficiency as the core.

Read Full Article

like

3 Likes

For uninterrupted reading, download the app