CAC — Meaning and details

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost incurred to acquire a new customer. This includes the cost of marketing, sales, and any other expenses associated with attracting and converting a customer. CAC is a significant metric for businesses as it helps in understanding the return on investment for customer acquisition and informs about the efficiency of the marketing and sales processes.

CAC = Total Cost of Acquisition / Number of Customers Acquired