Customer acquisition cost (also known as CAC) is, as the name implies, the cost a business incurs in its attempts to acquire new customers. The CAC number is a critical metric for any company interested in monitoring its marketing return on investment (ROI).
More and more companies are measuring their CAC than ever before. For one reason, it’s a more accessible metric to measure with digital marketing. Secondly, CAC has become an integral metric for companies that are making marketing decisions based on data.
Because digital marketing can target specific groups of customers, measuring CAC is much easier. Traditional marketing channels are difficult to target specific groups of customers, making this metric much less impactful.
