Customer Acquisition Cost (CAC) is the total cost to acquire one new customer. Calculate it: CAC = (Total Sales & Marketing Costs) ÷ (Number of New Customers Acquired). For example, if you spend $10,000 on marketing and acquire 100 customers, your CAC is $100. Healthy CAC to LTV ratio is 1:3 (customer lifetime value should be 3x CAC). Track CAC by channel to optimize spend. Reduce CAC through organic channels, referrals, and better targeting.
Key Customer Acquisition Cost Takeaways
- CAC = Total Marketing & Sales Costs ÷ New Customers Acquired
- Healthy CAC:LTV ratio is 1:3 (LTV should be 3x CAC)
- Include all costs: ads, salaries, tools, content, events
- Track CAC by channel to identify best-performing sources
- Lower CAC through: SEO, content marketing, referrals, partnerships
- Average CAC varies: B2C $10-200, B2B $200-1,000+
Customer Acquisition Cost Statistics
1:3
target CAC:LTV ratio
$200-1K
average B2B CAC
$10-200
average B2C CAC
6-12 mo
CAC payback period target
Expert Tips
Track CAC by channel
Some channels cost 10x more per customer - optimize spend accordingly
Include all costs
Don't forget salaries, tools, content, events - not just ad spend
Calculate blended vs new channel CAC
New channels often have higher initial CAC that improves with optimization
Monitor CAC payback period
Target 6-12 months - longer means cash flow problems
Recommended Tools & Resources
Mixpanel
Track acquisition funnel and conversion