CAC

CAC, or Customer Acquisition Cost, measures how much money a business spends to gain a new customer. It includes expenses like marketing, advertising, sales efforts, and other resources used to attract and convert potential customers. Calculating CAC helps businesses understand the efficiency of their marketing strategies and determines whether their customer acquisition is sustainable and profitable. A lower CAC indicates more cost-effective efforts, while a higher CAC suggests the need to optimize marketing or sales processes. Overall, CAC is a key metric for evaluating the health and growth potential of a business.