Categories: Analytics & Data
Definition: Customer Acquisition Cost (CAC) is the average amount of money a business spends to acquire a new customer, calculated by dividing all marketing and sales costs by the number of new customers gained in that period, and it’s used to evaluate the efficiency and ROI of customer acquisition efforts.
Why It Matters: Understanding this concept is essential for modern web strategies, directly impacting user engagement and technical performance.
How It Works: Performance and implementation are generally evaluated using industry-standard tracking tools and technical audits. This process often closely interacts with concepts like Bounce Rate.
Related: Bounce Rate, Key Performance Indicator, Conversion Rate
Synonyms:
Customer Acquisition Costs