#acquisition

Calculate and optimize CAC. Formula: Total Sales & Marketing Costs ÷ Number of New Customers. Best practices: 1. Segment by channel. 2. Include all costs (tools, salaries, ads). 3. Track cohorts over time. 4. Compare to LTV (LTV:CAC ratio should be 3:1). 5. Payback period (ideally < 12 months). 6. Optimize high-CAC channels. 7. Increase conversion rates. 8. Retention reduces effective CAC.