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Acquisition cost (CAC)
The total cost of acquiring a new customer, including marketing and sales expenses, divided by the number of customers acquired in a given period.
What is Acquisition cost (CAC)?
What is Acquisition cost (CAC)?
Customer Acquisition Cost (CAC) represents the total investment needed to acquire a new customer. It includes marketing spend, advertising, sales salaries, tools, and any other related expenses divided by the number of customers gained. A lower CAC indicates more efficient customer acquisition. Understanding CAC helps businesses evaluate their marketing effectiveness, optimize spending, and improve long-term profitability.