Commerce Glossary
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What is Customer Acquisition Cost (CAC)?
cus - tom - er ac - qui - si - tion cost
noun
Is the price a company pays in order to acquire new customers and is an important metric that companies should consider. To calculate CAC, divide the total cost of acquisition by total new customers in a specific period of time.
How Does Customer Acquisition Cost (CAC) Work?
Customer Acquisition Cost (CAC) consists of all the money spent towards earning a customer, from human resources to marketing, sales and customer onboarding of support efforts.
In email marketing, this metric represents the cost to generate one lead, subscriber or customer from an individual email campaign. It is calculated by dividing the total campaign cost by the number of leads, subscribers or customers it has generated.
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