Calculate Your Sales Only CAC
Your Sales Only CAC
This figure shows the average sales cost to acquire one new customer primarily through sales efforts. Use it to assess sales team efficiency and ROI. Accurate tracking in your CRM is vital for attribution. Compare to LTV.
Understanding Sales Only CAC
Why Isolate Sales Costs?
Calculating CAC using only direct sales costs helps isolate the performance and efficiency of your sales team, particularly in B2B or complex sales environments where sales activities are a major driver of customer acquisition.
- Evaluate sales rep and team productivity.
- Assess the ROI of sales tools (like CRMs).
- Inform sales compensation and bonus structures.
- Requires clear separation from marketing costs and attribution.
Defining Sales Costs & CRM Importance
Direct sales costs typically include:
- Sales team salaries, commissions, and bonuses.
- Costs of sales tools (CRM, sales engagement platforms, etc.).
- Sales-related travel and entertainment expenses.
- Sales training costs.
Accurate tracking within your Customer Relationship Management (CRM) system is crucial for both logging costs and attributing customer acquisition to sales efforts (e.g., tracking deal sources, lead ownership).
Calculation Formula
Sales Only CAC Formula
Example:
If your total direct sales costs (salaries, commissions, tools) for the quarter were $80,000, and your sales team's efforts were primarily responsible for acquiring 50 new customers during that period:
Sales Only CAC = $80,000 / 50 = $1,600
This indicates an average sales cost of $1,600 to acquire each new customer primarily through the sales channel.
Frequently Asked Questions
Primarily, exclude all marketing costs (ad spend, marketing salaries, content creation, marketing tools). You should also typically exclude general business overhead (rent, utilities, admin support) unless you are calculating a "Fully Loaded Sales CAC" (which is less common but possible).
This requires clear definitions and tracking, often via your CRM. Sales-attributed customers might be those originating from outbound prospecting, deals closed from sales-qualified leads (SQLs) passed by marketing but heavily worked by sales, or deals where sales engagement was the dominant factor. Marketing attribution focuses on customers acquired through campaigns, content, SEO, etc., often with less direct sales involvement (e.g., self-serve signups). Consistent lead source tracking is key.
Simple Blended combines both sales and marketing costs divided by *all* new customers. Marketing Only uses just marketing costs divided by marketing-attributed customers. Sales Only uses just sales costs divided by sales-attributed customers. Each provides a different lens on acquisition efficiency.
Not necessarily. B2B sales cycles involving significant sales effort naturally have higher CACs than simpler, marketing-driven models. The key is comparing the Sales Only CAC to the Lifetime Value (LTV) of the customers acquired. A high CAC might be perfectly acceptable if it acquires very high-LTV customers. Aim for an LTV:CAC ratio significantly greater than 1, often cited as 3:1 or higher as a healthy benchmark.
Improve Sales Efficiency and Lower Costs?
Explore guides on optimizing sales processes, leveraging CRM data, and improving sales team performance to reduce your Sales Only CAC.