Acquisition Cost

Acquisition cost refers to the total expenses a business incurs to attract and convert a potential customer into a paying client. This includes marketing and advertising expenses, sales team wages, promotional offers, and any other resources used during the process. Essentially, it’s the investment made to acquire a new customer. Tracking this cost helps a business assess the efficiency of its marketing strategies and determine profitability, ensuring that the money spent on gaining new customers is justified by the revenue they generate over time.