CAC
Also known as customer acquisition cost
Customer acquisition cost is the total sales and marketing spending required to win one new customer.
Why It Matters
Compared with what that customer is worth over time, it decides whether growth creates value or consumes it.
Related Terms
- LTVLifetime value is the profit a customer is expected to generate over the whole of their relationship with a company.
- Unit EconomicsUnit economics is the profit or loss on a single unit of business: one customer, one order or one transaction, once the direct costs of serving it are counted.
- ChurnChurn is the rate at which customers stop paying over a given period.
- Go To MarketA go-to-market approach is how a company reaches customers and sells to them: the channels, the pricing, the sales model and the partners involved.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
brandunder Analyzes Brand Clarity Through Website Analysis
The platform identifies what visitors understand about a business, what's missing from its website and which improvements to prioritize, generating personalized results for each brand.
Anthropic Faces a New AI Dilemma as OpenAI Gains Enterprise Momentum
Anthropic is weighing a new AI model to respond to OpenAI’s growing enterprise momentum, creating a strategic tension between accelerating product development, maintaining safety standards and preparing for a potential public listing.
Zara Is Rethinking How It Expands
Inditex is turning to the U.S. for its next phase of growth, using online demand and store performance to make more selective decisions about where and how to expand.
How Etsy Is Building a New Economy Around Independent Sellers
Etsy is moving beyond the traditional marketplace model as AI-powered discovery, personalization and global commerce reshape how independent businesses reach consumers.
Terminal Istanbul Is Betting On A Bigger Future For Turkiye's Tech Economy
An airport built to move passengers is being rebuilt to move capital, technology and companies.
Europe Wants Bigger Companies. Is Scale Becoming A New Competitive Advantage?
Brussels is rethinking whether size is a problem to police or a capability to build.
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