CAC (Customer Acquisition Cost)
What it actually costs, in dollars, to turn a stranger into a paying customer.
…Our media plan is built to bring your CAC down quarter over quarter as targeting and creative improve.…
What it means
CAC, or Customer Acquisition Cost, is total sales and marketing expense divided by the total number of new customers acquired over a set period.
It only tells the full story alongside customer lifetime value — a $200 CAC is a bargain for a customer worth $5,000 over time, and a problem for one worth $150.
Sets a hard efficiency ceiling
CAC tells you the maximum you can spend to win a customer and still turn a profit.
Compares channels apples-to-apples
CAC lets you weigh paid search against social or referral spend on the same basis.
Signals when to scale or pull back
Rising CAC is often the first sign a channel is becoming saturated.
DNA's Take: We track CAC by channel and campaign, not just in aggregate, so we know exactly where to shift budget when acquisition costs start to climb.
Talk to our team