customer acquisition cost (CAC) payback

Customer acquisition cost (CAC) is the total amount spent on acquiring a new customer. It includes all the sales and marketing efforts required to gain that customer. CAC payback is a measure of the average cost of acquiring one customer, and it’s calculated by dividing the total expenses by the total number of customers acquired during a specific time period. It’s critical for companies to monitor and manage CAC payback effectively to ensure their customer acquisition is efficient and consistent.