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Customer Acquisition Cost

The average expense required to acquire a new customer.

Acme, a SaaS startup. Spent $1,000 in December on Google Ads (their only sales/marketing expenditure). They signed up 31 new customers that month. Their CAC is about $32 ($1,000/31).

Divide total expenditures to acquire customers during a defined period of time by the number of customers acquired during that time.

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Customer Acquisition Cost

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