How this calculation works
CAC = sales and marketing cost divided by new customers. It is most useful when paired with margin, repeat purchase rate or customer lifetime value.
Marketing
Estimate how much it costs to acquire one new customer over a campaign or period.
CAC = sales and marketing cost divided by new customers. It is most useful when paired with margin, repeat purchase rate or customer lifetime value.
CAC = sales and marketing cost / new customers. It shows acquisition cost per customer.
If a campaign costs 2,000 and brings 100 customers, CAC is 20 per customer.
CAC alone is incomplete. Compare it with margin, payback period and customer value before judging performance.