Updated: Wednesday, May 3rd 2023, 10:56:51 am
CAC for startups is a post for:
There is no perfect way to calculate CAC for startups, or for any company as a matter of fact, when you haven’t been in the market. It’s more of a test, learn and refine an approach that applies over here.
But here are some methods that might help when you are just starting –
Many businesses have adopted this logic – 8% of the lifetime revenue. The exact percentage vary from business to business but I have seen in past this is the most common average.
So essentially if your average order value per customer is $50, and average customer purchases 5 times in their lifetime. Then your CAC = $50*5*(8)/100 = $20