Customer Acquisition Cost (CAC) is a measure of the cost associated with acquiring a new customer. This measure includes all of the expenses that a company incurs in order to convince a potential customer to make a purchase, such as advertising, marketing, and sales costs. CAC is typically expressed as the total cost of acquiring a new customer, divided by the number of customers acquired during a specific period of time.
For example, a company that sells subscription-based software might spend $1,000 on marketing and sales efforts in a given month, and acquire 100 new customers during that month. In this case, the company's CAC would be $1,000 / 100 = $10.
This means that it cost the company an average of $10 to acquire each new customer during that month.
What is Finanshels?Setting up a good small-business bookkeeping system can be an involved process, especially if you’re not an experienced bookkeeper. Rather than spending enormous time and effort on getting your books up and running, consider turning to Finanshels for help. We’ll set up your bookkeeping system to ensure that your business is starting off right – and we’ll save you a huge amount of stress.Want someone to help you organize your bookkeeping system? Try Finanshels