Customer Success Glossary

Welcome to our list of common Customer Success terms. Keep up with our continually evolving industry and empower yourself with the latest Customer Success terms, definitions, and knowledge.

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Customer Acqusition Cost (CAC)

To calculate your average CAC, total up all of the costs that go into your customer acquisition tactics for a given period. Then divide by the number of customers acquired during that period. The result is your average CAC. CAC can also be calculated for individual customers.

How to Calculate CAC

To calculate your average CAC, total up all of the costs that go into your customer acquisition tactics for a given period. Then divide by the number of customers acquired during that period. The result is your average CAC. CAC can also be calculated for individual customers.

 

CAC = Total marketing and sales costs for customer acquisition / Total number of customers acquired

 

For example, if your acquisition-related marketing and sales costs for the year added up to $200,000 and you acquired 1,000 new customers over the year, your average CAC for the year would be $200 per customer.

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