Gimme Your Number

Number of cold calls, meetings, deals. Number of emails, opps, proposals. Pipeline, forecast, commission. Which # is most important?

CAC.

Haven't heard of it? Well your bosses boss has. 

CAC (Cost of Customer Acquisition) is how much it costs your company to have you ( #sales), sell to new customers. It's really the only number you should be worrying about. 

In 2017, there were a lot of "quota-busting" reps at Microsoft, Oracle, Ricoh and other places that got pink slips this year...because they didn't know their CAC.  Why let go of quota -busters?

Because their cost of acquiring a customer through those sales reps was more expensive than getting a customer in other ways...even if the NET result is getting LESS CUSTOMERS! Crazy right?  Why haven't you heard of CAC in sales training? 

Because the CAC meeting is the one you're not invited to.  It's the meeting that your boss comes out of, sweating.

Back of envelope math  - how much do you cost? What was last years Salary+30% overhead (benefits) + your commission. 

Got that number? Call that number Sales Cost (SC) Now how many customers did you bring in last year? 

Call that number Customers Won (CW) Divide SC by CW.  That's your CAC.  Once you do that...we'll be on our way to Step 2 - what it means....