Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a crucial business metric that represents the total cost incurred by a company to acquire a new customer. It encompasses all expenses related to marketing and sales efforts over a specific period, divided by the number of new customers acquired during that same period. These expenses typically include advertising costs, marketing team salaries, sales commissions, software tools, events, and any other costs directly attributable to convincing a prospect to make a purchase.