Cost of customer acquisition

Significance of Cost of customer acquisition?

2 Answer(s)


CAC is a very important measure that determines how quickly a company can scale.

As long as CAC is less than lifetime value of the customer then the company can spend virtually endless marketing $ to acquire customers.

The CAC is very commonly used in the tech industry specifically ecommerce and saas kind of business.


To know the impact on company's profitability and for future financial projections