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Program and advertising spend + salaries + commissions and bonuses + overhead in a month, quarter or year
Number of new customers in a month, quarter or year

What is Customer Acquisition Cost

The Customer Acquisition Cost (CAC) is a metric used to determine the total average cost your company spends to acquire a new customer.

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Why Customer Acquisition Cost Matters

CAC illustrates how much your company is spending per new customer acquired. You want a low average CAC. An increase in CAC means that you are spending comparatively more for each new customer, which can imply there’s a problem with your sales or marketing efficiency.