The total cost of acquiring a new customer, including marketing and sales expenses.

What it Measures ?

What we spend to get one new customer.

Relevant StakeHolders 

Marketing Team, CFOs, Founders

In-depth Use Case / Real-world Example

If a manufacturer spends ₹10 lakhs on marketing and sales in a month and gains 50 new customers, the CAC is ₹10,00,000 ÷ 50 = ₹20,000. Comparing CAC with CLV ensures that the company spends efficiently to acquire profitable customers.