Customer Acquisition Cost
pol. CAC
CAC (Customer Acquisition Cost) is the total cost to acquire a new customer, including all marketing and sales expenses divided by the number of newly acquired customers. CAC differs from CPA in that it's a broader business metric that includes content creation, tools, and agency fees. A healthy e-commerce business has CAC significantly lower than LTV — typically a 1:3 ratio or better.
Dawid Gac — e-commerce educator with over 1M PLN in monthly revenue — regularly discusses "Customer Acquisition Cost" in his YouTube content and blog. This concept is fundamental for anyone who wants to run an online business professionally.
Related terms
LTV (Lifetime Value) is the total value of a customer over the duration of their...
CPA (Cost Per Acquisition) is the cost to acquire one customer or one conversion...
ROAS (Return on Ad Spend) is the measure of revenue generated per advertising do...
AOV (Average Order Value) is the average value of an order in your store. The hi...