Trevant Academy Digital Marketing Agency Glossary

Plain language explainers to help you keep up with the evolving marketing landscape.

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Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) measures the total cost of acquiring a new customer, including all marketing and sales expenses. It helps businesses understand how efficiently they are converting spend into actual customers.

Calculation: CAC = Total Sales & Marketing Costs รท Number of New Customers Acquired

Example: A brand spends $10,000 on marketing and sales efforts in one month and gains 200 new customers. The CAC is $50.

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