What Is Customer Acquisition Cost (CAC)?
3 Oct 2025 · 0 min
0:24
In this brief instructional segment, the speaker defines Customer Acquisition Cost (CAC) as the average amount a business spends on marketing and sales to acquire a single customer. The definition emphasizes that while the concept is straightforward, calculating CAC can be nuanced due to varying marketing and sales expenses. The speaker illustrates the calculation with a concrete example: a $2,000 marketing campaign that results in five new customers yields a CAC of $400 (i.e., $2,000 ÷ 5). The purpose of the segment is to provide a clear, practical understanding of CAC for marketers and business owners.
