Glossary · Sales efficiency
Customer acquisition cost (CAC)
How much you spend on sales and marketing to win one new customer. Lower CAC with healthy retention usually means a more efficient business.
Related: Lifetime value (LTV) · Monthly recurring revenue (MRR) · CAC payback period · LTV:CAC ratio
A bit more nuance▾
- Fully loaded CAC includes salaries, not just ad spend.
- Compare CAC to LTV — paying more to acquire than a customer is worth is a trap.
Go deeper▾
Discussion questions▾
- Which channel has the best CAC today — and is it scalable?
- What costs do you exclude today that you should include?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.