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SaaS Channel CAC Goals Calculator: Monitor & Test Viable Paid Channels

Posted by Trevor Hatfield

10/6/20 8:28 AM

Paid advertising for SaaS businesses can be costly! We want to help you make sure you are properly monitoring your channel CAC and understanding if a channel is viable to scale, as well as understanding how each channel compares to your organic channel CAC.

In order to do this we have put together a process to follow that takes into consideration the 3:1 LTV:CAC Ratio as the backbone of our testing strategy. We want the LTV:CAC Ratio to always be greater than 3:1. This will keep healthy SaaS growth at the top of our growth testing as well.

First let's gather the information we need on a monthly basis for the correlating channels below.

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Topics: Cost to Acquire Customers (CAC), Marketing Budget, SaaS Acquisition, Paid Advertising

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