CAC Payback

Definition

The period required for a customer to generate revenue equal to the cost of acquiring them, a metric that only matters until you run out of investors willing to pay for growth.

Example Usage

Our CAC payback period is 14 months, which is acceptable for a SaaS company.

Source: SaaS and marketing terminology

Related Terms

Beginner

quarterbacking

When multiple team members independently contact the same client or prospect, creating confusion and looking spectacularly uncoordinated. The corporate equivalent of too many cooks.

📣 Marketing / Advertising

Beginner

segments

In marketing, the practice of dividing your audience into smaller groups based on demographics, behavior, or psychographics so you can target them with laser precision. It's like organizing your contacts into friend groups, except way more invasive and profitable. The more segments you have, the more you can pretend you understand human behavior.

📣 Marketing / Advertising

Beginner

laugh track

A recorded or live audio of audience laughter added to a TV show or comedy program to cue viewers when to find something funny. Common in sitcoms, it serves as a social reinforcement mechanism that can make jokes feel more engaging or signal comedic timing.

📣 Marketing / Advertising

Intermediate

Click-Through Rate

The ratio of people who actually click on your ad versus those who pretend it doesn't exist, much like how people treat street performers. A 2% click-through rate is considered good, which tells you everything you need to know about how much people love ads.

📣 Marketing / Advertising

Advanced