Customer Acquisition Cost (CAC)

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.

$CAC(t)=Sx+Mx/N$

Standardization Status

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