Customer Acquisition Cost (CAC): Difference between revisions
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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. | 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 (Sx) and marketing expenses (Mx) in the time period (t) divided by the number of new customers (N) acquired in that time period. | |||
<math> | <math> | ||
CAC(t)=Sx+Mx/N | |||
</math> | </math> | ||
{{RFC_Metric|number=22/0001|title=Customer Acquisition Cost (CAC)|version=0.9|status=proposal|type=metric}} | |||
[[Category:Metric]] | [[Category:Metric]] | ||
Revision as of 14:24, 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 (Sx) and marketing expenses (Mx) in the time period (t) divided by the number of new customers (N) acquired in that time period.
Standardization Status
Request for Comments (RFC): 22/0001 - Customer Acquisition Cost (CAC)
Type: metric
Version: 0.9
Status:proposal