This episode of the "Foundations" podcast dives into Customer Acquisition Cost (CAC) specifically for SaaS startups. The hosts kick things off by answering listener questions about Annual Recurring Revenue (ARR) and pricing models. They then explore CAC, breaking down how to calculate it and the various factors that influence it, such as marketing expenses, sales strategies, and the length of the sales cycle. Using examples from companies like Wix and Slack, they highlight the significant variations in CAC across businesses. The discussion makes it clear that CAC is not a fixed figure; rather, it's a metric that requires continuous evaluation and tweaks in line with marketing techniques and product developments. The episode wraps up by urging listeners to reflect on their own CAC and consider ways to enhance it through better conversion rates or effective viral marketing strategies.
