Customer Acquisition Cost (CAC): Difference between revisions
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== Details == | == Details == | ||
'''Sales Expenses''' (S<sub>x</sub>) includes | |||
* the wages all of the personnel in Sales, including commissions | * the wages all of the personnel in Sales, including commissions | ||
* all expenses for tools uses by this personnel | * all expenses for tools uses by this personnel | ||
Revision as of 15:05, 4 December 2022
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 (Sx) and marketing expenses (Mx) in the given time period (Δt) divided by the number of new customers (NC) acquired in that time period.
Details
Sales Expenses (Sx) includes
- 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.
Standardization Status
Request for Comments (RFC): 22/0001 - Customer Acquisition Cost (CAC)
Type: metric
Version: 0.9
Status:proposal