Acquisition Cost

Acquisition cost, often referred to as Customer Acquisition Cost (CAC), represents the total expense a business incurs to acquire a new customer. This metric encompasses all costs associated with convincing a potential customer to purchase a product or service, including marketing campaign expenditures, sales team salaries, commissions, overhead, and any other resources directly tied to customer conversion. Calculating acquisition cost is fundamental for assessing the profitability and sustainability of a business model.