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_x) and marketing expenses (M_x) in the given time period (Δt) divided by the number of new customers (NC) acquired in that time period.

$CAC(\Delta t)={\frac {S_{x}+M_{x}}{N}}$

Details

Sales Expenses (S_x) 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_x) include

• the wages all of the personnel in Marekting
• 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 Δt

Standardization Status

Request for Comments (RFC): 22/0001 - Customer Acquisition Cost (CAC)
Type: metric
Version: 0.9
Status:proposal

See also

Customer Lifetime Value (CLV)

Pages list options

Namespace:	all (Main) Talk User User talk OpenSaasWiki OpenSaasWiki talk File File talk MediaWiki MediaWiki talk Template Template talk Help Help talk Category Category talk Property Property talk Concept Concept talk smw/schema smw/schema talk Rule Rule talk  Invert selection  Associated namespace
Category:
Subpages of (include namespace):

Title
List of Standards
Open SaaS Standardization
MediaWiki:Sidebar
Service Level Agreement
Talk:Churn Rate
File:Mar 8 2023 OSI Meetup.jpg
Mutual Action Plan
MediaWiki:Common.js
MediaWiki:Mobile.js
User:JonathanGregory
Talk:Customer Acquisition Cost (CAC)
User:Carlo.Hanuszkiewicz
Talk:Customer Lifetime
How to contribute
Churn Rate
User:Mara Melão
File:Mara.profile.picture.jpg
File:Carlo Hanuszkiewicz 2.jpg
File:Carlo Hanuszkiewicz.jpg
OSI-RFC Template
Sandbox Page
Customer Lifetime Value (CLV)
Code of Conduct
Talk:The Chicken Manifesto
Customer Acquisition Cost (CAC)
Annual Recurring Revenue (ARR)
Monthly Recurring Revenue (MRR)
List of Open SaaS RfCs
CAC-LTV-Ratio
Net Dollar Retention (NDR)
Request for Comment (OSI-RFC)
Gross Dollar Retention
smw/schema:Group:Predefined properties
Property:Foaf:homepage
Property:Owl:differentFrom
smw/schema:Group:Schema properties
MediaWiki:Smw import foaf
MediaWiki:Smw import owl
Property:Foaf:knows
Property:Foaf:name
MediaWiki:Smw import skos
Template:RFC Metric
The Chicken Manifesto
User:Steven Morell
About/Contributors/Steven Morell
About:Contributors/Steven Morell
Contributors:Steven Morell