Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the cost associated directly with acquiring a new customer, a crucial metric for startups to monitor.
Benefits
Knowing your CAC helps plan budgets better. It also makes it easier to improve marketing strategies for better results.
Frequently Asked Questions
What is customer acquisition cost CAC metric?
The CAC metric shows how much money a business spends to gain one new customer. It adds up marketing and sales costs and divides by the number of new customers.
Is customer acquisition a metric?
Yes, customer acquisition is a metric. It measures how effectively a business can gain new customers within a specific time.
Is customer acquisition cost a KPI?
Yes, CAC is a Key Performance Indicator (KPI). Businesses use it to track their efficiency in gaining new customers against the cost.
Key Takeaway
CAC is crucial for businesses to understand their spending on gaining new customers. It guides budgeting and helps make marketing more effective.