Customer Acquisition Cost (CAC)
Total sales and marketing cost divided by new customers gained. The all-in price of one new customer, not just the ad spend per lead.
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The definition
Total sales and marketing cost divided by new customers gained. The all-in price of one new customer, not just the ad spend per lead.
Why it matters to an owner
Count everything: ads, tools, the agency, your own selling hours. The honest CAC is always higher than the ad report's version. And it's the one profit depends on.
Keep going
LTV : CAC CalculatorWhat a customer is really worth over the whole relationship, against what one costs to acq…CPA (Cost Per Acquisition)Total spend divided by new customers won. Leads that actually closed. Deeper than CPL beca…Payback PeriodHow long a new customer takes to return their acquisition cost in profit. Short payback fu…
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