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Know Your Metrics: Customer Acquisition Cost (Lag & No Lag) - Definition & Calculation

Lag or No Lag?! That is the question to answer, and an important distinction to note when talking about Customer Acquisition Cost (aka, CAC).

One of the nuances to understand with CAC (amongst other efficiency metrics), is tying expenses to revenue and customers, while being mindful of the time periods.

Jeff shares with us what CAC is, and walks through two examples of how it is calculated (no lag & lag examples included!).

Calculation slides from video above:

CAC (No Lag):

Table showing calculation of CAC with no lag

CAC (2 Quarter Lag):

Table showing calculation of CAC with 2 quarter lag

If you are interested in learning how we got the two datasets that were used for these calculations you can reference:


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