Episode Details
Back to Episodes
Should Your Customer Success Team Count Towards CAC?
Published 5 months ago
Description
In episode #335, Ben answers a common operator question: Should Customer Success be included in the cost of customer acquisition (CAC)? He explains how Customer Success should be coded based on responsibilities, when it belongs in COGS vs. Sales, and when CS expenses should be included in expansion efficiency metrics.
What You’ll Learn
- Why CAC applies only to acquiring new customers.
- How Customer Success roles differ between adoption, retention, renewals, and expansion.
- When Customer Success expenses should be included in the cost of expansion ARR.
- How to allocate Sales, Marketing, and CS expenses between new and existing revenue.
- Why proper allocation is foundational for CAC payback, LTV to CAC, and Cost of ARR.
Why It Matters
- Prevents inflated or misleading CAC and go-to-market efficiency metrics.
- Ensures expansion ARR economics are calculated accurately.
- Helps leaders understand the true cost structure behind revenue growth.
- Supports cleaner financial models, better forecasting, and stronger investor discussions.
- Aligns internal teams (CS, Sales, Finance) on roles and financial impact.
Resources Mentioned
SaaS Metrics course: https://www.thesaasacademy.com/the-saas-metrics-foundation