Measurement
Customer Acquisition Cost
Total sales and marketing spend divided by the number of new customers gained in the same period.
What it means in practice
Customer acquisition cost includes the agreed sales and marketing expenses associated with gaining new customers during a defined period. Blended calculations cover all acquisition activity, while channel-level versions allocate selected costs and customers to a source.
Why it matters
Customer acquisition cost helps determine whether growth remains financially sustainable relative to customer value.
How it is used
Teams include creator fees, media, production, and attributable new customers when evaluating a creator program's acquisition cost.
Also called
CAC
Related terms
- Attribution WindowThe period after an impression or click during which a resulting conversion is credited to the ad.
- Lifetime ValueThe total expected profit or revenue from a customer across the whole relationship with the business.
- Cost Per ClickThe average amount an advertiser pays each time someone clicks a placement.