Customer Acquisition Cost

Definitions

1. The average total cost of acquiring a new customer, usually including sales and marketing expenses over a defined period. Customer acquisition cost is one of the central metrics in startup economics.

   In plain English: How much it costs on average to win a new customer.

   Example: "Customer acquisition cost rose faster than pricing, which worried the board."

Related Terms

• Compound Growth
• Contribution Margin
• LTV
• CAC Payback
• Call Option
• Capital Efficiency
• CLV
• Payback Period
• Profitability
• Revenue Growth
• Startup Metric