1. Finance
  2. Customer & Market Economics

Customer Acquisition Cost


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.


Total Cost of Acquisition / Number of Customers Acquired


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.