Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the total cost of sales and marketing efforts that a business incurs to acquire a new customer.

CAC measures how much you spend to win a paying customer. Healthy businesses keep CAC well below lifetime value (LTV).

Organic SEO content — guides, comparisons, and free tools — lowers CAC over time. Product-led loops (feedback → ship → notify) also turn users into advocates.