Digital Marketing & Analytics
Intermediate

Customer Acquisition Cost

Total cost of acquiring one new customer including all sales and marketing expenses.

Formula

CAC=Sales & Marketing CostNew CustomersCAC = \frac{\text{Sales \& Marketing Cost}}{\text{New Customers}}

Variables

CACCustomer acquisition cost
\text{Sales \& Marketing Cost}All acquisition-related spend
\text{New Customers}Customers acquired in the period

Example

$50 000 marketing spend, 500 new customers → CAC = $100

Did You Know?

SaaS companies typically aim for a CAC payback period of 12 months or less.

marketingcacacquisitionbusiness

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