View source for Customer Acquisition Cost (CAC)

Customer Acquisition Cost, CAC, refers to the cost of acquiring a new customer, which includes expenses such as advertising, sales commissions, and other marketing efforts.

== Definition ==
Sum of all sales expenses (S<sub>x</sub>) and marketing expenses (M<sub>x</sub>) in the given time period (<small>&Delta;</small>t) divided by the number of new customers (NC) acquired in that time period. 

<math>
CAC(\Delta t)=\frac{S_x+M_x}N
</math>

== Details ==


;Sales Expenses (S<sub>x</sub>) include
* the wages all of the personnel in Sales, including commissions 
* all expenses for tools uses by this personnel
* excluding company-wide tools like email, chat, data storage etc.

;Marketing Expenses (M<sub>x</sub>) include
* the wages all of the personnel in Marketing
* all expenses for tools uses by this personnel
* excluding company-wide tools like email, chat, data storage etc.
* including Ad Spend in the given time period <small>&Delta;</small>t

{{RFC_Metric|number=22/0101|title=Customer Acquisition Cost (CAC)|version=0.9|status=draft|type=metric}}

== See also ==
* [[Customer Lifetime Value (CLV)]]
* [[CAC-LTV-Ratio]]

[[Category:Metric]]

== Sources ==
* [https://www.productplan.com/glossary/customer-acquisition-cost/ What is Customer Acquisition Cost (CAC)? (productplan.com)]