CAC = (ad spend + marketing salaries + tooling) / new clients acquired in the period. UK advisers typically see CAC 600-2,000 pounds mass-affluent, 3,000-8,000 pounds HNW.
Formula
CAC = Total marketing cost / New clients
Include
- Media spend - Agency fees - Marketing headcount - Tooling (CRM, email, landing pages)
Dont include
Adviser salaries (that is CoGS) or back-office costs.
Healthy ratio
LTV:CAC of 4:1 or better for sustainable growth.