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Blended CAC hides the truth about which channels are working. When you divide total spend by total customers, the efficient channels subsidise the inefficient ones and the signal disappears. Channel-level CAC is what lets you reallocate budget away from the channels that are destroying value and toward the ones that create it — but it also requires honest attribution, which is where most teams get stuck.
Blended CAC = Total spend across all channels ÷ Total new customers. Channel CAC = Spend on channel X ÷ New customers attributed to channel X. The gap between the two reveals cross-channel subsidy.
spend to 12000 while keeping customers at 25 — recalculate blended CAC and observe how a single channel can drag the overall number.Use these three in order. Each builds on the one before.
In one paragraph, explain the difference between blended CAC and channel CAC and why blended CAC is often the metric that hides the most important information.
Walk me through how multi-touch attribution models (last click, linear, time-decay, data-driven) assign customers to channels differently and how each changes the channel CAC numbers I would report.
We have strong organic search traffic alongside our paid channels. Walk me through the debate about whether to include or exclude organic in blended CAC, and what each approach implies for our growth decisions.