LEONEL KREA
Marketing

CAC.

Definition

Customer Acquisition Cost: the money it costs to acquire a new customer, calculated as Total marketing and sales spend / New customers acquired in a period. It is the fundamental metric for evaluating whether an acquisition channel is profitable. It is compared with LTV (Lifetime Value): a sustainable business requires LTV > 3× CAC (the SaaS rule of thumb).

Relationships

Hypernyms

is-a / broader

Hyponyms

types-of / more specific

Related

same semantic field

Related terms

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