CAC

Customer Acquisition Cost: the average sales and marketing spend needed to win one new paying customer.

Core MetricsTerm 25 / 81

Formula

CAC = Sales and marketing spend ÷ New customers

In practice

Counting only ad spend makes CAC look lower than it is; include salaries and tools. Calculate it per channel, because a blended CAC hides the bad ones.

Strategies that use this term

10 results

02Building Leadership by Narrowing Your Niche
07Referral and Recommendation Systems
10Influencer Partnerships
24Subscription Box Model
33Capital Strategies
44Customer Lifetime Value (LTV)
45International Localization
53Customer Segmentation

Articles that use this term

2 results

11Rethinking LTV: True Lifetime Value Is Not Revenue, but the Behavioral Accumulation a User Invests in the Product
01Which Growth Work Goes to an Agent? Choosing Between a Prompt, a Workflow and an Agent, Stage by Stage

Strategies that use this term

Articles that use this term

Once the terms are clear, build the system.