Customer Carrying Cost
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Description
While CAC is the ad spent on acquiring a customer, there may be further costs incurred by the company to retain the customers over the duration they are associated with the brand.
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Published 10/15/23
Burn rate is the measure of net cash, a company lost in a period, usually a month. Burn = Expenses - Cash inflow Burn multiple is the ratio of revenue earned and the amount of money burned to earn that revenue.
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The viral coefficient helps to quantify the extent to which a product reaches a maximum number of people by making minimum spending on marketing activities may be happening. Businesses often run referral campaigns to effect a high virality of the product and achieve a high virality coefficient.
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