CAC

CAC stands for “Customer Acquisition Cost” in marketing and business. It refers to the total cost incurred by a company to acquire a new customer. This metric is used to measure the effectiveness and efficiency of marketing and sales efforts in attracting and converting customers.

To calculate CAC, you need to divide the total cost of acquiring customers (including marketing expenses, sales commissions, advertising costs, etc.) by the number of customers acquired within a specific period.

The CAC metric is valuable for businesses to understand the financial investment required to bring in new customers. It helps in evaluating the profitability of customer acquisition strategies and optimizing marketing budgets.