Customer Acquisition Cost (CAC)

What is Customer Acquisition Cost?

Customer Acquisition Cost is the amount of money you spend on sales & marketing to acquire one customer

It’s a way for businesses to calculate how many new customers they need each month, quarter, etc., in order to grow their business at a certain rate.

Paid Marketing (Cost per lead), Earned Media/Brand Awareness Campaigns (cost per impression) and Sales Development Efforts all combined form CAC.

This includes any outbound marketing that doesn't cost anything upfront but will result in customer conversions down the line like surveys, webinars and content creation.