The sustainable CAC framework in 5 blocks
Most startups have uncontrollable CAC. Not due to lack of data. Due to lack of framework. Here's the one we use to reduce CAC by up to 70%.
CAC is simple: divide total acquisition spend by number of new customers. The problem is most companies only look at the final number without understanding where it works and where it doesn't.
We divide CAC into 5 blocks: Awareness (where are you discovered?), Consideration (why do they consider you?), Decision (why buy from you?), Onboarding (how do you activate them?) and Retention (do they stay or leave?).
Each block has a cost. By reducing cost in each block without sacrificing quality, you reduce total CAC. This framework has helped 20+ companies reduce CAC between 40-70%.