In the intricate world of business metrics, some indicators take precedence due to their direct correlation with the viability and growth of a business. One such crucial metric is CAC or Customer Acquisition Cost. Delving deep into its significance, calculation and impact can provide a clearer perspective on a company’s health and long-term prospects.
Customer Acquisition Cost, commonly called CAC, represents the cost of acquiring a new customer. In simpler terms, it answers the question: “How much does it cost the company to gain one new customer?”