Blended CAC
Blended CAC averages 20-40% lower than paid-only CAC because organic and referral channels have near-zero marginal cost (OpenView 2024).
💡TL;DR
Blended CAC = Total S&M Spend / All New Customers. It averages paid ($200+) and organic ($0-50) channels into one number. Benchmarks: SMB SaaS $100-300, Mid-market $500-1500, Enterprise $2000+. Track blended CAC monthly but always break down by channel to find optimization opportunities. Rising blended CAC often means paid channels are scaling faster than organic—a warning sign for unit economics.
Definition
The weighted average customer acquisition cost across all channels—paid, organic, referral, and partner. Unlike channel-specific CAC, blended CAC gives a single number that represents your true cost to acquire a customer from any source. Formula: Total Sales & Marketing Spend ÷ Total New Customers.
🏢What This Means for SMB Teams
SMBs often have higher organic ratios (word-of-mouth, founder selling) early on. As you scale paid, watch blended CAC creep. If it rises >15% QoQ, investigate channel mix.
Track MRR, churn, CAC payback—AI acts when metrics slip.
Metrics that matter, actions that move them.
📋Practical Example
A 45-person HR tech startup ($8M ARR) tracked only paid CAC ($340) for investor reports. After calculating blended CAC including organic signups and referrals, their true blended CAC was $185. This improved their perceived LTV:CAC ratio from 3.2x to 5.9x—critical for Series A fundraising. However, it also revealed that 60% of new customers came from founder networks, a channel that wouldn't scale.
🔧Implementation Steps
- 1
Pull total S&M spend for the period (ads, tools, events, allocated headcount).
- 2
Count all new customers regardless of source attribution.
- 3
Calculate blended CAC = Total Spend / Total New Customers.
- 4
Break down by channel: Paid CAC, Organic CAC, Referral CAC, Partner CAC.
- 5
Track blended CAC monthly and set alerts for >10% MoM increases.
❓Frequently Asked Questions
Should I report blended or channel-specific CAC to investors?
Report both. Blended CAC shows overall efficiency, but investors want to see channel breakdown to assess scalability. High organic ratios are great but may not scale; high paid CAC is concerning if payback is long.
How do I allocate headcount costs to blended CAC?
Include fully-loaded cost (salary + benefits + tools) for roles focused on acquisition: SDRs, demand gen, paid media. Exclude customer success and support unless they drive referrals.
⚡How Optifai Uses This
Optifai calculates blended and channel-specific CAC automatically from connected ad platforms and CRM. Alerts trigger when blended CAC rises >10% MoM, prompting channel-level investigation.
📚References
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Related Terms
CAC (Customer Acquisition Cost)
Total sales and marketing spend divided by new customers gained in a period. It includes media, tools, payroll, agencies, and overhead allocated to acquisition. Teams track CAC alongside payback period and LTV to know whether growth is profitable.
CAC Payback Period
The number of months it takes to recover the cost of acquiring a customer through their gross margin contribution. CAC Payback = CAC ÷ (Monthly ARPU × Gross Margin). Shorter payback means faster reinvestment into growth.
CAC to LTV Ratio
The ratio of customer lifetime value to customer acquisition cost, measuring the return on acquisition investment. LTV:CAC = Customer Lifetime Value ÷ Customer Acquisition Cost. A ratio of 3:1 means you earn $3 for every $1 spent acquiring a customer.
LTV (Customer Lifetime Value)
The total revenue a business expects from a single customer account over the entire relationship. LTV = ARPU × Gross Margin × Customer Lifespan (or ARPU × Gross Margin ÷ Churn Rate). It determines how much you can spend to acquire customers profitably.