What is the difference?
Customer Acquisition Cost vs Logo Churn
Customer Acquisition Cost
Logo Churn
What is it?
Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.
Logo Churn is the enemy of any subscription company. Logo Churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period.
Who is it for?
Categories
Formula
ƒ Sum(Sales Costs + Marketing Costs) / Count(New Customers)
ƒ Count(Churned Customers This Period) / (Total # of Customers at the Beginning of the Period)
Published and updated dates
Date created: Oct 12, 2022
Latest update: Mar 21, 2024
Date created: Oct 12, 2022
Latest update: Nov 12, 2023