O CAC or Customer Acquisition Cost represents the average cost a company incurs to acquire a new customer.
This calculation includes all marketing and sales expenses divided by the number of new customers acquired in the period. This means that you shouldn't just take the cost of paid trafficfor example, but rather all the costs (including the salaries of those working to acquire customers).
Monitor the CAC is essential to understand the efficiency of the campaigns and ensure that the company gets a positive return on its investment.
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