CAC

GlossaryAlso known as: Customer Acquisition Cost, Blended CAC

Customer Acquisition Cost: total financial capital expended to win a single new customer, encompassing advertising spend, sales team salaries, commissions, software tooling, and operational overhead. Fundamental benchmark of acquisition efficiency. The ratio between LTV and CAC (LTV:CAC) governs commercial viability: below 3:1 indicates inefficiency; above 5:1 signals under-investment.

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