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 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.

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

Standardization Status

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