Entering customer acquisition cost for a subscription

Customer Acquisition Cost (CAC) is the amount your company spends to obtain a new customer. It's an especially important metric for software-as-a-service (SaaS) companies. The CAC is considered a marketing expense, so to represent it in your forecast, you'll use an Expense entry. 

Marketing expenses such as CAC can be entered in one of three ways in LivePlan: a dollar amount, a percent of overall revenue, or a percentage of a specific revenue stream.

Customer acquisition cost as expense amounts

  1. In the Forecast tab, click Expenses:
    Forecast section with expenses highlighted.png

  2. Click the Add Expense button:
    forecast expenses with add expense highlighted.png

  3. Name the expense and select Amount ($):
    marketing expense name and entry type detail.png

  4. Choose Varying amounts over time and enter the expense amount for each month:
    2024-03-14_10-31-26.png

  5. Select Marketing for What sort of expense is this:
    marketing expense type detail.png

  6. Click Create & Exit:
    create and exit.png

Customer acquisition cost as a percentage of revenue

LivePlan cannot calculate your customer acquisition cost, but you can adjust the forecast model based on the percentage of subscription revenue allocated to customer acquisition.

  1. In the Forecast tab, click Expenses:
    Forecast section with expenses highlighted.png

  2. Click the Add Expense button:
    expense page with add expense highlighted.png

  3. Name the expense and select % of overall revenue or % of specific revenue stream:
    expense name and percentage of overall revenue boxes highlighted.png

  4. Indicate whether this percentage will be a constant amount or if it will vary over time:
    percentage constant or varying amounts.png
    • Constant amount: Enter the percentage of the revenue stream or overall revenue and select when the expense will start:
      percentage amount and start date.png
    • Varying over time: Plot the percentage of overall revenue or a specific revenue stream:
      percentage of overall revenue varying amounts.png

  5. Click Create & Exit:
    create and exit.png
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