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Business
Customer Acquisition Cost
The total cost of getting one new paying customer, including all marketing and sales expenses.
CAC is one of the most important numbers in online business. You calculate it by dividing total marketing and sales spend by the number of new customers. Lowering CAC while keeping customer quality high is a key to scaling profitably.
It's the full price of inviting one new guest to your party — ads, free gifts, landing pages, everything.
Real world: A store spends £4,000 on ads and gains 80 new customers. Customer Acquisition Cost is £50 per customer. If each customer spends £120 on average, the business is profitable.
💡 The lower your customer acquisition cost, the more money you keep from every sale.