Enter the cost of sales, cost of marketing, and the number of customers acquired to determine the customer acquisition cost.
Customer Acquisition Cost Formula
The following formula is used to calculate a customer acquisition cost.
CAC = ( CoS + CoM ) / NC
- Where CAC is the customer acquisition cost ($/customer)
- CoS is the cost of sales ($)
- CoM is the cost of marketing ($)
- NC is the number of new customers
Customer Acquisition Cost Definition
A customer acquisition cost, or CAC for short, is a measure of the total cost is takes to acquire 1 customer on average.
Customer Acquisition Cost Example
How to calculate customer acquisition cost?
- First, determine the cost of sales.
This would be anything that goes into selling a good or service.
- Next, determine the cost of marketing.
Measure the total cost of marketing that is targeted specifically at this specific product.
- Nest, determine the number of new customer.
Measure the number of new customers during the time period being analyzed.
- Finally, calculate the CAC.
Using the formula presented above, calculate the customer acquisition cost.
FAQ
What is a customer acquisition cost?
A customer acquisition cost, or CAC for short, is a measure of the total monetary cost of acquiring one customer. In general this CAC is balanced with the life time value of the customer to determine if a product is profitable and worth pursuing
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