What’s CAC?
Customer Acquisition Cost (CAC) is the total cost to a business of acquiring a new customer. It includes not just the cost of any advertising they responded to, but also fixed costs like the salaries of staff in the sales and marketing team, as well as the cost of logistics if the business has to get a product from their warehouse to that customer.
CAC is expressed as a dollar value, calculated by dividing the total spending on sales and marketing by the number of customers acquired in a given period under scrutiny – typically a month, quarter...