{
  "rogueId": "sales.new_cac_ratio",
  "slug": "new_cac_ratio",
  "domain": "sales",
  "defaultLabel": "New CAC Ratio",
  "description": "S&M expense attributable to new-customer acquisition divided by the new-customer CARR generated in the period. Per SMSB, the cleanest read on the new-logo acquisition engine's efficiency — strips out the expansion motion which has materially different unit economics. Common pitfall: failing to split AE comp time correctly between new and expansion activities — when the same AE owns both motions, an allocation rule (often the % of OTE tied to new-vs-expansion quota) is required and must be applied consistently quarter-over-quarter.",
  "fieldType": "number",
  "unit": null,
  "maturity": "general",
  "suggestedForStages": [
    "seriesA",
    "seriesB",
    "seriesC",
    "public"
  ],
  "defaultOwningFunctions": [
    "Sales",
    "Finance"
  ],
  "stageRelevance": {
    "seriesA": "recommended",
    "seriesB": "recommended",
    "seriesC": "recommended",
    "public": "recommended"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "SaaS Metrics Standards Board",
    "sourceUrl": "https://www.saasmetricsboard.com/new-cac-ratio",
    "sectionRef": "New CAC Ratio",
    "publicationDate": "2023-01-01",
    "attributionNotice": "Metric definitions reference standards published by the SaaS Metrics Standards Board (saasmetricsboard.com). imboard is not affiliated with, endorsed by, or a member of SMSB."
  },
  "formula": "New CAC Ratio = (S&M spend allocated to new-customer acquisition in period) / (New-customer CARR generated in period). Per SMSB §New CAC Ratio: spend allocation must follow a documented rule (e.g. fraction of S&M headcount tied to new-business quota) applied consistently.",
  "whyItMatters": "Isolates the new-logo engine — when blended CAC Ratio is moving, this is the first line of split-out diagnosis. Boards use it to evaluate whether to invest more in acquisition or shift weight toward expansion.",
  "interpretationGuidance": "Per SMSB convention, New CAC Ratio of 1.0–2.0 is the typical mid-stage SaaS band; > 2.5 sustained signals the new-logo motion is structurally expensive (often a fit problem with target segment). Should be ≥ Blended CAC Ratio (new-logo is always more expensive than expansion); if New CAC Ratio < Blended, the spend allocation between new and expansion is mis-tagged.",
  "relatedKpiIds": [
    "sales.blended_cac_ratio",
    "sales.expansion_cac_ratio",
    "sales.cac",
    "sales.cac_payback_period",
    "sales.new_business",
    "sales.carr"
  ]
}