CUSTOMER
ACQUISITION COST

Customer Acquisition Cost (CAC) is a metric that helps businesses understand the total cost involved in acquiring a new customer. This includes all the expenses related to marketing and sales efforts.

In simple terms, CAC tells you how much money you need to spend to gain one new customer.

Knowing your CAC helps you evaluate the efficiency of your marketing and sales efforts and allows you to optimize your strategies for better profitability.

It’s a vital metric for any business looking to grow sustainably.

Why is it important to measure?

1. Helps you determine if your marketing and sales strategies are cost-effective.
2. By knowing how much it costs to acquire each customer, you can make smarter decisions about where to invest your resources.
3. A lower CAC means you’re spending less to gain each customer, which is great for your bottom line.