Customer Acquisition Cost (CAC)
The average cost of winning one new customer: everything spent on marketing, advertising, and selling over a period, divided by how many new customers that spending brought in.
Strong customer relationships push CAC down, because a referred buyer arrives at no marketing cost.
Often Confused With
- Customer Lifetime Value (CLV)
- CAC is what one customer costs to win; lifetime value is what that customer is expected to be worth over time.
Taught In
See Also
2.1.C.2 · 2.7.B.3