The term "high-CAC" refers to products and services with a high Customer Acquisition Cost (CAC). Customer Acquisition Cost is the amount of money a business spends on marketing, advertising, and other sales and marketing efforts to acquire a new customer. In other words, it represents the cost associated with convincing a potential customer to make a purchase.
For high-CAC products and services, the cost of acquiring a new customer is relatively high compared to the revenue generated from that customer's initial purchase. High-CAC products and services can be challenging for businesses because the cost of acquiring customers may eat into the profits generated from those customers, especially if the customer retention and repeat purchase rates are low.
Businesses that offer high-CAC products or services typically need to focus on optimizing their marketing and sales strategies, improving customer retention efforts, and increasing the lifetime value of their customers to ensure profitability. It may involve finding ways to lower the acquisition cost or finding ways to upsell or cross-sell to existing customers to maximize their value over time.