How to Calculate the Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the cost of acquiring a customer to purchase products. It works along with the Customer Lifetime Value (CLV). CAC is an important term for growth businesses.

If a company knows the cost of bringing a customer on, it can get a clear vision of its capital requirements in reaching a specific level of growth. It is the total spend on digital marketing and other direct costs which the company has deployed to attract customers.

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Flavia Richardson

Flavia Richardson

Funding | Advising | Mentoring | Dedicated to Changing Early-Stage Growth

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