Customer Acquisition Cost (CAC): Definition & How to Calculate
![](https://cdn.prod.website-files.com/660b408731fd5a45f4908aca/661fab7bbbbf5f1817519c06_1980x1080%20lead%20page%20hero%20(42).png)
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, advertising, and sales expenses, divided by the number of new customers acquired.
Why is Customer Acquisition Cost (CAC) important?
CAC is important because it helps businesses measure the efficiency of their marketing efforts and optimize their strategies to minimize costs and maximize customer acquisition.
An easy way to understand Customer Acquisition Cost (CAC)
Think of it as the total amount of money a company spends to gain a new customer, including advertising, marketing, and sales expenses.