The expenses associated with acquiring a new customer is typically how CAC is calculated.
CAC = Sales & Marketing Expenses / Total # of Customers
This is a difficult metric to calculate in practice because 99.999% of companies don't track individual sales and marketing expenditures per individual lead or customer.
Aurem makes this much easier.
First, focus on "Customers" and help target our metric. To determine a "customer" we look to Invoices imported from payment process apps like Stripe and accounting apps like Quickbooks. If a person or company has 1 invoice, they count as a "customer".
Next, we determine when they became a customer by getting the earliest Date from associated Invoices. Now we know when to count the customer.
Finally, we add up all Expenses from the same time the customer was initially invoiced. If your accounting app allows for categorization, like in Quickbooks allowing expenses tracked by "Department", Aureum limits Expenses to categories labeled "Sales" and "Marketing".
Here's an example:
| # | Customer | InvoiceDate |
| 1 | Customer1 | 2022-02-15 |
| 2 | Customer2 | 2021-12-01 |
| 3 | Customer3 | 2022-01-01 |
2021-Q4 = 1 Customer
2022-Q1 = 2 Customers
| # | Expense Date | Amount |
| 1 | 2021-12-01 | $3000 |
| 2 | 2022-01-01 | $4000 |
| 3 | 2022-02-01 | $5000 |
2021-Q4 = $3000
2022-Q1 = $9000
For our CAC calculation:
2021-Q4 = $2500
2022-Q1 = $4500