CAC Cost Increase

Watch our insightful conversation with Ray Rike, Founder & CEO of Benchmarkit, as he breaks down how companies are approaching growth in 2025 and its ARR impacts.

From variable pricing strategies to bottom-up acquisition tactics, Ray shares valuable benchmarking data that reveals how the industry's smartest leaders are adapting to today's market challenges.

“So during the period of efficient growth, we went from spending $1.31 of sales and marketing to get $1 of new ARR (Annual Recurring Revenue) to $1.62, so over a 30% increase.

The public companies, the big guys, the best of the best, your Harvard and MIT grads. They went from spending about $1.41 of sales and marketing to get $1 of net new ARR, a little bit different being new ARR, minus churn and down sell ARR, that's net new ARR, they went from that dollar and 41 cents to $2.10 over the last two years, so almost a 50% increase.

So the reality is, customer acquisition costs per dollar of new ARR have gone up.”

Check out the full Account Based Friday episode for more!
https://www.youtube.com/live/J_eFQVMa0UA
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