Glossary / SaaS Product & Business Metrics

What is CAC (Customer Acquisition Cost)?

The total cost of acquiring one new customer, including marketing spend, sales costs, tools, and overhead. It is usually analyzed against lifetime value.

Definition

The total cost of acquiring one new customer, including marketing spend, sales costs, tools, and overhead. It is usually analyzed against lifetime value.

Why it matters

If CAC grows too high relative to customer value, the growth model breaks down.

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