CAC Definition

cac definition

What is CAC?

CAC definition: CAC is an acronym of Customer Acquisition Cost; it refers to the amount of money needed to acquire a new customer through sales and marketing in a specific time period.

CAC is calculated using a number of factors including that contribute to the cost of marketing, advertising, and eventual sale of a product.

These factors include:

For example:

  • LG spend $100,000 on advertising a new Smart TV in Q1.
  • They acquired 100 customers
  • Their CAC is $1,000

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