CAC (Customer Acquisition Cost)
01 Definition
CAC (Customer Acquisition Cost) meaning: The average cost of acquiring a new customer.
CAC divides the relevant sales and marketing costs for a period or cohort by the number of new customers acquired. Included costs and attribution windows must be stated.
Also called
customer acquisition cost
Why it matters
How CAC (Customer Acquisition Cost) fits the work
It shows whether the growth engine can acquire customers at sustainable economics.
In context
The company reduced CAC by improving product-led trial conversion.
Practical note
Compare CAC with gross margin retention payback period and customer lifetime value.