How it Works
Division.
What is Customer Acquisition Cost?
Total Spend / New Customers.
Step-by-Step Guide
- 1 Spend
- Ads + Sales.
- 2 Customers
- New acquired.
- 3 CAC
- Cost per user.
Example
Input: $1000, 50
Result: $20
FAQ
Payback?
Ideally < 12 months.
Conclusion
Keep CAC lower than LTV.