The Customer Acquisition Cost, or CAC, is the cost incurred to get a potential customer to become a customer and purchase a product or service.
For example, think that to acquire new customers you might spend on: design services, advertising resources, campaign budgets, and so on. Add up all these expenses and divide them by the number of customers you have acquired in a certain period and you have your CAC for that period. The lower the CAC, the more efficient your customer acquisition will be.
The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.