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Acronyms Dictionary

CAC

Definition

Customer Acquisition Cost. The total cost of winning a customer to purchase a product or service.

Deep Dive

CAC is a vital growth metric that calculates the average amount of money spent to acquire a single new customer. This includes all marketing and sales expenses divided by the number of customers gained.

Examples & Use Cases

  • 1Spending $1,000 on Facebook ads to get 10 customers results in a $100 CAC
  • 2Reducing CAC by optimizing landing page conversion rates
  • 3Comparing CAC across different ad platforms to find the most efficient channel

Related Terms

LTVROIMarketing Mix

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