CAC
Customer Acquisition Cost
In one sentenceThe total cost to win one new customer, including marketing and sales.
What it means
CAC goes beyond CPL: it counts everything spent to land a paying customer (ads, tools, salaries, commissions) divided by the customers won.
How to use it
- Compare CAC with LTV. A common healthy target is LTV at least 3 times CAC.
- Lower CAC by improving conversion at each funnel stage, not only by cutting spend.
FormulaCAC = total sales and marketing cost รท new customers in that period
Related terms
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