Customer Acquisition Cost: A Practical Business Guide
CAC becomes useful when marketing and sales spend are defined consistently and tied to actual customer acquisition.
Working record
| Check | What to do | Evidence to retain |
|---|---|---|
| Define acquisition spend | Choose whether the figure covers advertising alone or a broader sales and marketing cost boundary. Keep that definition consistent. | The define acquisition spend record, its source and the person responsible for resolving missing evidence. |
| Count new customers correctly | State which customer group the decision concerns and what it needs to accomplish. Distinguish observed feedback from an internal assumption. | Account segment, observed need and supporting evidence. |
| Compare CAC across periods | Use the same definition of acquisition costs and new customers. Record delays between spend and customer conversion. | The compare cac across periods record, its source and the person responsible for resolving missing evidence. |
| Connect CAC with LTV | Compare acquisition cost with a customer value measure that states its margin, retention and time horizon assumptions. | The connect cac with ltv record, its source and the person responsible for resolving missing evidence. |
Review the decision
CAC becomes useful when marketing and sales spend are defined consistently and tied to actual customer acquisition. Keep define acquisition spend, count new customers correctly, compare cac across periods attached to the conclusion so the next owner can challenge the assumptions. Resolve missing evidence before treating this record as approval.
Continue the decision
How to Build a Simple Marketing Measurement System · How to Use LTV and CAC Together.
Calculation and source notes
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.