Calculate how much it costs to acquire a new customer over a 5-year projection.
Customer Acquisition Cost (CAC) is the total cost your business incurs to acquire a new customer, including all sales and marketing expenses. This metric is fundamental to understanding the efficiency of your growth strategy and the sustainability of your business model. CAC combines all costs associated with convincing a prospect to buy your product or service - from advertising spend and marketing salaries to sales commissions and tools.