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Customer Acquisition Cost (CAC)
The total cost associated with acquiring a new customer, including all marketing and sales expenses over a specific period.
CAC = (Total Sales & Marketing Spend) ÷ (Number of New Customers Acquired)
A healthy CAC payback period for B2B SaaS is typically under 18 months. When benchmarked against LTV, the LTV:CAC ratio should be at least 3:1 to indicate a sustainable growth model.