What does CAC mean?

by | Oct 14, 2020

CAC or Customer Acquisition Cost, is the total cost of marketing and sales efforts used to acquire a new customer.

 

CAC can be measured by dividing all the expenses in getting new customers by the number of customers gained during the period the money was spent. For example, let’s say a company spend $1000 a year on their marketing and acquired 1000 customers in that same year. That means the CAC is $1.

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