Glossary B2B
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a key business metric that measures the total expense incurred to acquire a new customer. It includes all costs associated with marketing, advertising, sales, and promotional efforts. CAC helps businesses determine the efficiency and profitability of their acquisition strategies.
The formula for CAC is:
CAC = Total Acquisition Costs ÷ Number of New Customers Acquired
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