What is customer acquisition cost (CAC)?
The total cost of winning one new customer, usually ad spend plus sales cost divided by new customers.
Customer acquisition cost (CAC), explained
Calling leads faster and qualifying them better raises conversion, which lowers CAC for the same ad budget.
To measure it honestly, include everything spent to win customers in a period: ads, agency fees, sales salaries and tools. Comparing CAC by channel shows which campaigns bring paying customers, not just leads.
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