Customer Acquisition Cost (CAC)

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost, or CAC, is the total amount of money a business spends to get a new customer. To calculate it, you add up all your sales and marketing costs over a certain period and divide that by the number of new customers you gained in that same period. This metric is super important because it helps you understand if your business model is sustainable. If your CAC is higher than the amount of money you make from that customer, you have a problem. The goal is to keep your CAC as low as possible.

Related Terms

Channel

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Channel Conflict

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What is Channel Partner? A channel partner is a company you team up with to sell your products or services. Instead of hiring a massive sales team to cover the globe, you can work with channel partners who already have a presence in different markets or industries. These partners can be resellers,

Channel Sales

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Co-marketing

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