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Customer acquisition cost (CAC)

What is CAC? 

CAC is the cost of convincing a potential customer to buy a product or service, including sales and marketing expenses. By calculating and optimizing CAC, marketers can assess the efficiency of their customer acquisition efforts, evaluate marketing channel performance, and refine acquisition strategies to improve overall profitability.

How to calculate CAC?

CAC = Total cost of acquisition (including sales and marketing expenses)/ Number of new customers acquired during a specific period
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