SaaS Metrics Encyclopedia
CAC Payback, or Customer Acquisition Cost Payback Period, is a metric that measures the time it takes for a company to recoup the cost incurred in acquiring a new customer through its generated revenue. In other words, it indicates how long it will take for the company to recover the investment made in acquiring a customer through the revenue generated from that customer.
CAC Payback is calculated by dividing your CAC by your Average Deal Size (ARR) and multiplying the result by 12.
To improve CAC Payback and achieve a faster return on investment, companies can focus on various strategies.
By effectively managing and optimizing CAC Payback, SaaS companies can secure their financial sustainability and lay the foundation for scalable growth.
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