Glossary

What iscustomer acquisition cost?

Customer acquisition cost is total marketing spend divided by the number of new customers it produced. It is the number that decides whether a channel is worth continuing, once you compare it to what a customer is worth.

All 118 terms

CAC only means something next to lifetime value. Paying €20 to acquire somebody who spends €15 once is a slow way to go out of business; paying the same for somebody who returns monthly is a bargain.

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