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Metrics

What is CAC?

What it costs to get one customer. Compared against what that customer is worth, it decides whether growth makes money or loses it.

Metrics

The definition

Customer acquisition cost. What it costs on average to win one new customer.

An example

Spend $2,000 on ads and get 40 customers, and CAC is $50.

Related

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Questions people ask

What is CAC?

Customer acquisition cost. What it costs on average to win one new customer. What it costs to get one customer. Compared against what that customer is worth, it decides whether growth makes money or loses it.