Financial Glossary

Customer Acquisition Cost

Definition

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing and sales expenses.

Related Services

Marketing analytics, growth strategy consulting, and sales optimization services help businesses lower CAC while maintaining growth.

Problem and Application

High CAC reduces profitability. Businesses must optimize marketing efficiency and improve customer retention to balance CAC and lifetime value.

Conclusion

Reducing CAC while maintaining growth is key to profitability. Companies should refine targeting strategies and increase conversion rates.