Sobes.tech
Senior

What is CAC (Customer Acquisition Cost)? Do you work with this metric?

sobes.tech AI

Answer from AI

CAC (Customer Acquisition Cost) is a metric that shows how much it costs on average to acquire a new customer. It is calculated as the sum of all marketing and sales expenses divided by the number of new customers in the same period.

Example: If 100,000 rubles are spent on advertising and sales in a month, and 200 new customers are acquired, then CAC = 100,000 / 200 = 500 rubles per customer.

Working with CAC is important for assessing marketing effectiveness and budget planning. If CAC is too high, it may indicate that the acquisition channel is ineffective or the product converts poorly. In product analytics, CAC is often compared with LTV (Lifetime Value) of a customer to understand profitability.

In my practice, I used CAC for:

  • Optimizing advertising campaigns
  • Making decisions about scaling channels
  • Analyzing the return on marketing investments.