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WHY IS THIS IMPORTANT?

Understanding why CAC is high and how it's calculated is crucial because it will help us identify specific areas for improvement. Knowing the contributing factors allows for targeted strategies to reduce CAC while maintaining quality and customer satisfaction

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Key Task What needs to be done Why Potential Impact on next steps
Review CAC Calculation Methodology 1. Ensure data accuracy

  1. Validate data sources | Different cost inclusions or inaccurate data can skew the actual CAC figure | Low (Assumption: The current CAC is calculated accurately) | | Benchmark against competitors | Compare CAC benchmarks for similar products and services, considering the company's current stage | Helps assess our performance relative to industry standards | Medium (Will help set a realistic target) | | Segment the CAC | 1. By Channel: Break down CAC by marketing and sales channels (e.g., social media, paid search)

  2. By Customer Segment: Analyse CAC for different customer groups | 1. Identifies the most cost-effective channels

  3. Enables resource reallocation to more efficient segments | High (Will help focused effort allocation) | | Identify recent trends | 1. Examine CAC over the last quarter and month

  4. Investigate significant fluctuations in CAC | Helps monitor recent performance and assess the impact of past campaigns or changes | Medium (Significant trends might influence future strategy) |

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