CAC (Customer Acquisition Cost)

CAC (Customer Acquisition Cost) is the average amount a company spends to acquire a new customer. This metric is essential for understanding how much you need to invest in marketing, advertising, and sales to gain a customer. The goal is to keep CAC as low as possible while attracting quality customers.

How does CAC work?

CAC is calculated by dividing the total marketing and sales costs by the number of new customers acquired during a given period. For example, if you spend €10,000 on marketing and acquire 100 new customers, your CAC is €100 per customer.

Concrete example

Imagine you run a SaaS platform and you spend €5,000 on Google Ads to attract customers. If this campaign brings you 50 new subscribers, your CAC will be €100 per customer. This means you need to invest €100 for each new customer.

Why is CAC important?

CAC is a key metric for measuring the profitability of marketing and sales efforts. If your CAC is lower than your CLTV (customer lifetime value), it means you are profitable, as the revenue generated by each customer exceeds the cost of acquiring them. If CAC is too high, it can be difficult to grow without burning too many resources.

Want to reduce your CAC?

If you want to optimize your CAC and reduce the costs of acquiring customers, feel free to contact us via the contact form on our website. We will be happy to help you implement more profitable and effective marketing strategies.