The total cost of winning one new customer, across marketing and sales.
In plain words
CAC is the marketing and sales cost in a period divided by the number of new customers. It matters because a business needs to earn more from a customer than it cost to win them.
Questions to ask a company that offers this
What CAC do you expect for my market?
Which costs do you include?
A good company will answer these plainly and in writing. Vague or evasive answers are worth noting.
Explanation last read through on 25 October 2026. It is general guidance in plain language, not advice for your particular project. Tell us if something is wrong or unclear.