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GLOSSARY

What is customer acquisition cost? (CAC)

DEFINITION

Customer acquisition cost (CAC) is your total marketing and sales spend in a period divided by the number of new customers won in that period. It shows what each customer costs you to win.

Compare it with what a customer earns you. For example, 3,000 spent to win 10 customers is a CAC of 300, which only makes sense if each customer is worth clearly more than that.

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