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Customer Acquisition Cost (CAC) Ratio

Software-as-a-Service[None]Ratio

Definition

This single number is the key to determine your level of sales and marketing investment. Divide the annualized net gross margin added during the quarter by the sales and marketing costs of the previous quarter.

Formula

[annualized net gross margin(period N)] / [sales and marketing costs(period N-1)]

Tags

acquisition, Cost, customer