Glossary
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total sales and marketing spend required to win one new customer, found by dividing that spend by the number of new customers it produced.
For example, spending $10,000 in a month to acquire 50 customers means a CAC of $200. CAC is one of the clearest measures of whether your growth is efficient or just expensive.
It is most useful read alongside customer lifetime value: a low CAC only matters if the customer is worth more than they cost to acquire.
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