Blended CAC is £340. No channel actually costs £340.

The average cost of acquiring a customer is one of the most quoted numbers in a growth plan, and one of the least useful for deciding where the next pound goes.

By Steve 5 min read
Abstract bridge artwork for Blended CAC is £340. No channel actually costs £340.

A business calculates its customer acquisition cost the obvious way: total sales and marketing spend for the period, divided by new customers won. The answer comes out at £340. Lifetime gross profit per customer is comfortably above that, payback looks reasonable, and the conclusion writes itself: acquisition is profitable, so more of it should be better. Then the spend goes up and the maths stops working. Customer volume rises, but not proportionately. Blended CAC drifts to £480, then £610. Nobody can point to what changed, because on paper nothing did.…

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