CAC (Customer Acquisition Cost)

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) is the average expense of gaining a single customer. This metric includes marketing and sales expenses as well as salaries and overhead associated with attracting and converting a visitor to a customer.

How to calculate Customer Acquisition Cost:

() Total sales and marketing expenses / (#) new customers acquired = () CAC

The cost of acquiring a customer is simply the sum of all marketing and sales expenses (including salary and overhead costs) over a given period divided by the number of new customers added during that same period.

For example, if you spent €15,000 in the past month to acquire new customers (including marketing, sales, salaries, and overhead costs) and had 1000 purchases from new customers, your CAC would be €15.

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Joaquim Costa

Joaquim Costa

Talks about #digitalproducts #productmanagement #blockchain #crypto #startups #tech, and #innovation : https://www.linkedin.com/in/joaquimcostapt