The distribution on CAC remained the same with companies spending anywhere from $0.5-3 for $1 of ACV. However, the results were more statistically significant this year. However, this year the cost to upsell to existing customers went down ($0.18 vs $0.28 in 2011) as did the cost to renew ($0.09 vs $0.16 in 2011). The CAC associated with field sales went down ($0.83 vs $1 in 2011) which I think is a function of the longer contracts that companies are able to sign through the use of field sales teams. The CAC associated with internet sales is the highest and has more than doubled from last year (median of $1.06 vs $0.45 in 2011). Finally, the percent of ACV associated with upsells is lower in 2012 than it was in 2011. This could be because more of the companies surveyed in 2012 are younger and are not as far along in their implementations with newly-signed customers to have the opportunity to upsell them, since of the companies that reported over $60M in annual revenue 40% of lice
(Curated by Dennis Moore. Read the complete article here)
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