Measures the cost of acquiring a new customer for services.

What it Measures ?

How much it costs to get a new customer.

Relevant StakeHolders 

Marketing, Finance, Strategy

In-depth Use Case / Real-world Example

CAC is calculated by dividing the total costs spent on marketing, sales, and customer onboarding by the number of customers acquired. For example, if ₹50,000 is spent to acquire 100 new customers, the CAC is ₹500. This KPI helps assess the efficiency of sales and marketing strategies in generating new customers. In manufacturing, reducing CAC ensures that service offerings can be scaled profitably without overspending on customer acquisition efforts.