Indicates the average cost to acquire a new customer.

What it Measures ?

How much it costs to get a new customer.

Relevant StakeHolders 

Growth Marketers, Finance Team

In-depth Use Case / Real-world Example

CAC is calculated by dividing the total marketing and sales spend by the number of new customers acquired during a given period. It’s crucial for understanding the efficiency of marketing and sales strategies. For example, if a company spends $50,000 on campaigns and brings in 250 customers, the CAC would be $200. Lower CAC means more efficient customer acquisition, but it must be balanced against Customer Lifetime Value (CLV) to ensure profitability. In B2B manufacturing, CAC can be higher due to longer sales cycles, but it should still be aligned with revenue potential. This KPI helps decision-makers adjust spending, evaluate campaign efficiency, and refine target audience strategies.