Meaning
Customer Acquisition Cost; the total sales and marketing spend required to gain a single new paying customer.
Three examples from work
Marketing review
Marketing LeadOur blended CAC dropped to eighty dollars after optimizing Google Ads.
CFOThat significantly shortens our payback period.
Unit economics
FounderWhat is our LTV to CAC ratio currently?
AnalystIt stands at 4:1, which signals highly sustainable unit economics.
Growth strategy
POOrganic content marketing generates customers at a fraction of our paid CAC.
PMLet's double our investment in high-intent SEO articles.
Pronounce each letter: 'C-A-C' or say 'cac'. Lowering CAC while maintaining customer quality is the primary goal of performance marketing.