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Definition

What is Customer Acquisition Cost (CAC)?

A measurement that allows you to assess the cost of scaling up your business.

It can be calculated by dividing the time and money spent on customer acquisition for a specific period of time by the number of new customers gained.

(Money + Time Spent)/Number of New Customers

For example, if you spend $500,000 on Sales and Marketing in a given month and added 50 customers that same month, then your CAC was $10,000 that month.

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