Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a key performance indicator (KPI) that measures the cost of acquiring a new customer. It is calculated by dividing the total cost of sales and marketing efforts by the number of new customers acquired during a specific period of time.
CAC is often used by businesses to determine the efficiency of their sales and marketing efforts and to identify areas for improvement.
CAC is a measure of the efficiency of a company’s sales and marketing efforts in attracting and converting new customers. It takes into account all the costs associated with acquiring new customers, including advertising, marketing, sales, and customer support.