What is the difference?

Customer Acquisition Cost vs Logo Churn

Customer Acquisition Cost

Logo Churn

What is it?

Customer Acquisition Cost (CAC) is the cost a business incurs to acquire a new customer. This includes the fully loaded costs associated with sales and marketing to attract a potential customer and to convince them to purchase, divided across all new customers.

Logo Churn is the enemy of any subscription company. Logo Churn is the number or percentage of subscribers to a service that discontinue their subscription to that service in a given time period.

Formula

ƒ Sum(Sales Costs + Marketing Costs) / Count(New Customers)
ƒ Count(Churned Customers This Period) / (Total # of Customers at the Beginning of the Period)

Published and updated dates

Date created: Mar 28, 2018

Latest update: Feb 25, 2022

Date created: Feb 19, 2019

Latest update: Feb 25, 2022