Metrics

CAC (Customer Acquisition Cost)

Definition

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, calculated by dividing total marketing and sales expenses by the number of new customers acquired in a period. AI marketing platforms help reduce CAC by optimizing targeting, improving content effectiveness, and identifying the most efficient acquisition channels through data-driven analysis.

Example

Plutus, iSupplyAI's God of Wealth, continuously evaluates the unit economics of proposed marketing strategies, ensuring every campaign has a viable CAC-to-LTV ratio.

Related Terms

LTV (Lifetime Value)MetricsMarketing ROIMetricsMarket AnalysisIntelligence

Related Reading

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