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Alex Oppenheimer
August 15, 2023
Integrations
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Sales & Conversions
Revenue Analytics
State of the Business
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Sales Ops

Customer Acquisition Cost (CAC) Over Time

What is the total cost to acquire a customer?
CAC stands for customer acquisition cost. This refers to the total cost spent by a business to acquire a new customer, usually expressed as an average. This is typically calculated by dividing a business’s total Sales and Marketing budget in a given period by the number of new customers acquired, with a time offset to account for the length of a sales cycle. CAC allows a business to understand how expensive their Go To Market motion. An efficient motion means that the revenue generated by a new customer is more than enough to cover the CAC, which allows the business to fuel growth.
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Stav Levi
August 15, 2023
Integrations
Categories
Sales & Conversions
Revenue Analytics
State of the Business
Marketing Ops
Sales Ops