How do you calculate customer acquisition cost?
Customer acquisition cost (CAC) is the average sales and marketing cost required to acquire one new customer in a chosen period.
Formula: (sales costs + marketing costs) ÷ new customers acquired.
Example: $12,000 of eligible spend and 150 new customers gives a CAC of $80.
Use consistent cost and customer periods, then estimate recovery time with the CAC Payback Period Calculator.
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