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CAC
(Customer Acquisition Cost)
Customer Acquisition Cost (CAC) is a metric that measures the total cost of acquiring a new customer, including marketing, sales, and advertising expenses. CAC is a critical metric for businesses to evaluate the effectiveness of their marketing strategies and ensure profitability.
Calculating CAC involves dividing the total acquisition costs by the number of new customers gained during a specific period. A lower CAC indicates more efficient customer acquisition, while a higher CAC may signal the need for optimization. Businesses often compare CAC with Customer Lifetime Value (CLV) to assess long-term profitability.
Calculating CAC involves dividing the total acquisition costs by the number of new customers gained during a specific period. A lower CAC indicates more efficient customer acquisition, while a higher CAC may signal the need for optimization. Businesses often compare CAC with Customer Lifetime Value (CLV) to assess long-term profitability.