Customer Acquisition Cost
Money
The cost associated with acquiring a new customer. Indicates the efficiency and effectiveness of marketing efforts. Customer Acquisition Cost (CAC) typically includes all marketing and sales costs.
Formula
Total Cost of Acquisition / Number of Customers Acquired
Example
If $10,000 is spent on marketing and sales (including advertising, content, events, tools, training, etc) and it results in 200 new customers, the CAC is $50.