Customeracquisition cost
The total sales and marketing spend needed to win one new customer.
Growth Score · Unit Economics
Definition
What it means
CAC equals acquisition spend in a period divided by new customers in it. Include salaries and tools, not only ad spend. Compare it with lifetime value and payback time to see if growth is affordable.
Unit Economics
Why it matters, with an example
It shows whether growth is affordable: a channel that costs more to win a customer than the customer returns stops being growth.
For example: You spend $6,000 on sales and marketing in a month and win 40 customers: acquisition cost is $6,000 / 40 = $150 a customer.
In Growth Score
Part of your score
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Guides that cover it
Unit Economics
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FAQ
Quick answers
What is Customer acquisition cost?
The total sales and marketing spend needed to win one new customer.
Where does it sit in Growth Score?
It belongs to the Unit Economics pillar, one of the 12 pillars your score is built from.
What should I read next?
Start with Customer lifetime value and CAC payback period, then browse the other terms in Unit Economics.
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