CAC (Customer Acquisition Cost)
💡 Quick Definition: The total sales and marketing expense required to acquire a single paying customer.
Detailed Explanation & Workplace Application
CAC is calculated by dividing total advertising, agency fees, and sales team salaries by the total number of new customers acquired during that specific period.
Practical Syntax / Framework Formula
CAC = (Total Ad Spend + Sales Salaries) / Number of New Customers Acquired Target Benchmark: LTV / CAC Ratio > 3.0x