Glossary
What is CAC?
customer acquisition cost
CAC (customer acquisition cost) is what you spend to win one new customer. Divide marketing and sales costs by the number of new customers.
Example
You spend 1,000 on ads and win 5 customers: simple CAC is 200. Add sales payroll and the number rises: a more honest picture.
Why it matters
A customer is worth winning only if they bring in more than they cost. Compare CAC to how much a customer leaves on average over time.