Customer Acquisition Cost (CAC)

From Open SaaS Wiki
Revision as of 14:24, 4 December 2022 by Steven Morell (talk | contribs)
Jump to navigation Jump to search

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