Customer Acquisition Cost (CAC) is the amount of money it costs you to acquire a paying customer. CAC is calculated by dividing the total amount of money spent on acquiring customers by the number of customers acquired.
CAC is a very important metric for any business because it determines how much money you're spending to acquire new customers. If you're spending too much money on customer acquisition, you might be better off spending that money on customer retention or product development.
CAC is also a very important metric for investors because it gives them an idea of how much money they can expect to make from a new customer.
It can be difficult to calculate Customer Acquisition Cost per Paying Customer directly inside of Xero; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your Xero data. You simply connect Causal to your Xero account, and then you can build formulae in Causal to calculate your Customer Acquisition Cost per Paying Customer.
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Customer Acquisition Cost per Paying Customer. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Customer Acquisition Cost per Paying Customer.