Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing spend, sales compensation, and associated overhead. A healthy business has a CAC that is significantly lower than the lifetime value of the customer it acquires.
Definition
Understanding Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing spend, sales compensation, and associated overhead. A healthy business has a CAC that is significantly lower than the lifetime value of the customer it acquires.
Related Concepts
Related Terms
- LTV
- Unit economics
- Demand generation
Get a Free Growth Assessment
Tell us about your business and we will send you an honest evaluation of your brand, marketing, operations, and growth potential within 48 hours. No cost. No obligation.