what is CAC?


4 Answer(s)


CAC is an acronym for Customer Acquisition Cost, it's the total cost you spend through various marketing channels divided by total number of customers.
CAC gives an idea about average money you are spending, through marketing, per customer. CAC is calculated for each marketing channel and there is overall CAC as well. It helps you manage your marketing budget and optimize your marketing expenditure.

CAC (Customer Acquisition Cost)is the amount of marketing money you have to spend to acquire 1 customer.

Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer. This cost is inclusive of the product cost as well as the cost involved in research, marketing, and accessibility costs. This is an important business metric. It plays a major role in calculating the value of the customer to the company and the resulting return on investment (ROI) of acquisition. The calculation of customer valuation helps a company decide how much of its resources can be profitably spent on a particular customer. In general terms, it helps to decide the worth of the customer to the company.

Customer Acquisition Cost (abbreviated to CAC) refers to the resources that a business must allocate (financial or otherwise) in order to acquire an additional customers.