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Glossary

What is CAC (Customer Acquisition Cost)?

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

  1. What CAC do you expect for my market?
  2. Which costs do you include?

A good company will answer these plainly and in writing. Vague or evasive answers are worth noting.

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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.