The more useful and much much important metric to understand is marginal contribution and your marginal CAC.
In the illustration you roughly have a $90 CAC for 0-10k and 10k-20k in spend. However the CAC average change to $100 which means for the spend of 20k-30k you paid $110 for those conversations. You then have to understand the business unit economics to ensure that on that marginal acquisition is profitable ( keeping in mind we are past the growth at all costs days and capital is expensive).
Agreed that looking at marginal metrics are great as well. The regression analysis gives you a sense on what CAC looks like at certain spend levels - from there, like you said, you can definitely look at marginal deltas, etc.
The more useful and much much important metric to understand is marginal contribution and your marginal CAC.
In the illustration you roughly have a $90 CAC for 0-10k and 10k-20k in spend. However the CAC average change to $100 which means for the spend of 20k-30k you paid $110 for those conversations. You then have to understand the business unit economics to ensure that on that marginal acquisition is profitable ( keeping in mind we are past the growth at all costs days and capital is expensive).
Hey Julian -
Agreed that looking at marginal metrics are great as well. The regression analysis gives you a sense on what CAC looks like at certain spend levels - from there, like you said, you can definitely look at marginal deltas, etc.
Cheers!