Calculating Customer Acquisition Cost (CAC) helps businesses determine the cost of acquiring a new customer. It's essential for evaluating the efficiency of marketing and sales efforts and optimizing resource allocation.
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How to Calculate Customer Acquisition Cost?
Customer Acquisition Cost calculation involves dividing the total cost of marketing and sales by the number of new customers acquired during a specific period. For example, if you spend $10,000 on marketing and sales in a month and acquire 200 new customers, your CAC would be $10,000 / 200 = $50.
Customer Acquisition Cost Calculation
Customer Acquisition Cost formula
CAC = Total Cost of Sales and Marketing / Number of New Customers Acquired
