Customers Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total expense a business spends to attract and gain a new customer. This includes marketing and advertising costs, sales team salaries, promotional campaigns, and any other resources used to convince a prospective customer to buy. Calculating CAC helps businesses understand how much they need to invest to grow their customer base and evaluate the efficiency of their marketing efforts. A lower CAC indicates a more cost-effective approach to acquiring customers, which is essential for sustainable growth and profitability.