Back to Glossary
Customer Acquisition Cost (CAC)
Customer acquisition cost is the total amount a business spends to acquire one new paying customer, calculated by dividing total acquisition spend by the number of new customers gained in a given period. In digital marketing, CAC is directly affected by the efficiency of both ad targeting and the post-click experience. A precisely targeted ad that lands on a generic page drives up CAC because it takes more clicks to produce one conversion. Reducing CAC without changing ad strategy typically comes down to improving the post-click experience so a higher percentage of existing clicks actually convert.
Explore more Glossary terms
Customer Acquisition Cost (CAC)
Customer acquisition cost is the total amount a business spends to acquire one new paying customer, calculated by dividing total acquisition spend by the number of new customers gained in a given period. In digital marketing, CAC is directly affected by the efficiency of both ad targeting and the post-click experience.
Read More
Customer Journey Mapping
Customer Journey Mapping visualizes how customers move through stages like awareness, consideration, purchase, onboarding, and loyalty.
Read More
Customer Journey Management
Customer Journey Management focuses on designing, monitoring, and improving the end-to-end experience users have with a brand across channels.
Read More
Customer Data Platform
A Customer Data Platform (CDP) unifies data from multiple touch-points, such as websites, apps, CRM systems, and support tools into a single, persistent customer profile.
Read More
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) measures how much a business spends to acquire one new customer, including marketing, sales, and sometimes onboarding expenses.
Read More
Custom Conversion
A custom conversion is a user-defined goal in analytics or advertising platforms used to measure specific actions that matter to a business.
Read More
Delaware, USA
Subscribe to our newsletter for exclusive updates and insights.
By clicking submit, you agree to the terms and conditions and acknowledge the privacy policy.










