CAC — Customer Acquisition Cost
Definition: The total cost of acquiring a new customer, including marketing and sales expenses.
Example
In board meetings, you'll often hear something like: "Let's pull the latest CAC numbers before we make a call" — shorthand for customer acquisition cost.
When you'll hear it
CAC shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to customer acquisition cost — and they expect the room to already know what that means.
FAQs
What does CAC stand for?
CAC stands for Customer Acquisition Cost.
What does CAC mean in business and finance?
The total cost of acquiring a new customer, including marketing and sales expenses.
Where will I hear CAC used at work?
CAC comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for customer acquisition cost, so people assume you already know the term.