Knowledge base · Strategy & growth

CAC

CAC stands for Customer Acquisition Cost: all marketing and sales costs to win one new customer.

Where CPA often counts ad spend only, CAC includes the whole picture: media, tooling, hours, agency fees and sales effort. It is the figure you steer on as an entrepreneur.

The health of your growth sits in the ratio of CAC to customer value. If a customer earns you three times their acquisition cost back, you have room to invest.

A rising CAC is not automatically bad. Deliberately entering new, more expensive segments can be wise, as long as customer value moves along.

How we do it

We break CAC down per channel and per segment, so you see where growth is truly profitable.

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Related terms

CPA

CPA stands for Cost Per Acquisition: what it costs to win one customer, order or sign-up.

Customer Lifetime Value

Customer Lifetime Value is the total value a customer brings for as long as they stay a customer.

Retention

Retention is keeping existing customers, measured as the share that comes back.

POAS

POAS is Profit On Ad Spend: profit per euro of ad budget, so ROAS with margin factored in.

Curious what this means for your brand?

We look at your numbers with you and show where the gains are, in plain language.

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