Frequently asked questions
What goes into CAC?
All sales and marketing spend (people, tools, programs) divided by net new customers in a period. The contested item is whether to include customer success costs that drive expansion. Most operators exclude them to keep CAC focused on acquisition.
What's a good CAC payback period?
Under 12 months is excellent. 12 to 18 months is typical for B2B SaaS. Above 24 months is a warning: either the deal sizes are too small for the motion or the motion is too expensive for the deal sizes.
How does CAC differ by segment?
SMB CAC is typically $1K to $5K; mid-market $10K to $40K; enterprise $50K to $200K+. The ratio of CAC to ACV is what matters most. High CAC paired with high ACV works; low CAC paired with low ACV works; mismatched ratios are the problem.
How do you lower CAC without cutting growth?
Three levers: better targeting (Landbase, intent data, scoring), better conversion (improved messaging and product fit), and channel mix shift (more PLG, less paid). Cutting headcount lowers CAC quickly but usually hurts growth more than it helps.
How is CAC affected by AI-driven outbound?
Done well: CAC drops 20 to 35 percent because the same headcount produces more pipeline. Done poorly (volume-only AI without quality): CAC rises because reply rates collapse and brand damage occurs.
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