Description
Blended CAC is a SaaS metric that considers the total cost that all marketing channels incurred to acquire customers during a given period. This metric includes costs that are both directly and indirectly incurred through paid and non-paid channels and excludes salaries and overhead costs.
Example
Blended CAC = Sales and marketing cost (excluding salaries and overheads) / New customer acquisition
Why it matters
If a company can significantly reduce its overall blended CAC, it can improve its profits. Further, with this increase, there can be two possibilities:a. to use the extra profits generated for scaling the business. b. Scaling business operations by outsourcing marketing.