What is CAC: Learn all about customer acquisition costs.
Posted: Sat Apr 19, 2025 4:38 am
Building loyal customers is one of the best ways to ensure a company's long-term success. However, it's neither an easy nor cheap process.
To win over new potential customers, companies must make significant investments. Marketing and sales efforts are the magnets that attract consumers, and they obviously come at a cost.
In this article, we explain what CAC stands for, how much it costs to acquire a new customer, and some tactics for keeping communication and marketing expenses and sales costs under control.
What is CAC or customer acquisition cost ?
Customer acquisition cost, often referred to by its acronym CAC, is a key performance metric that indicates the average investment or expenditure a company has to acquire potential customers over a specific period.
To calculate it, all expenses are added together and then divided by the number of customers acquired. It's a very important metric in a company's financial analysis and reporting to understand the return on investment of its marketing and sales strategies.
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How much does it cost to acquire a customer?
Your company must invest in several areas of its business to successfully acquire potential customers, expand its customer base, and, as a result, grow net revenue. Some of the costs associated with acquisition include:
Marketing expenses (advertising investments in ads, SEO, social media campaigns)
Expenses associated with other media (paid advertising in print and audiovisual media)
Sales expenses (sales team salaries, CRM systems , and other tools)
The amount invested in customer acquisition varies from company to company depending on the type of products or services they offer and their target market.
To win over new potential customers, companies must make significant investments. Marketing and sales efforts are the magnets that attract consumers, and they obviously come at a cost.
In this article, we explain what CAC stands for, how much it costs to acquire a new customer, and some tactics for keeping communication and marketing expenses and sales costs under control.
What is CAC or customer acquisition cost ?
Customer acquisition cost, often referred to by its acronym CAC, is a key performance metric that indicates the average investment or expenditure a company has to acquire potential customers over a specific period.
To calculate it, all expenses are added together and then divided by the number of customers acquired. It's a very important metric in a company's financial analysis and reporting to understand the return on investment of its marketing and sales strategies.
Organize your work with a free Excel template for your sales funnel.
Want to simplify the way you manage sales? Download this stockholder database free sales funnel template now.
Work email
Send it to me
Your data is processed in accordance with our privacy notice . You can unsubscribe at any time.
How much does it cost to acquire a customer?
Your company must invest in several areas of its business to successfully acquire potential customers, expand its customer base, and, as a result, grow net revenue. Some of the costs associated with acquisition include:
Marketing expenses (advertising investments in ads, SEO, social media campaigns)
Expenses associated with other media (paid advertising in print and audiovisual media)
Sales expenses (sales team salaries, CRM systems , and other tools)
The amount invested in customer acquisition varies from company to company depending on the type of products or services they offer and their target market.