Customer acquisition costs: key figure for customer acquisition efficiency

Customer acquisition costs (CAC) are the costs incurred by a company to acquire a new customer and include marketing and sales expenses. This metric is essential for evaluating the efficiency of marketing strategies and the profitability of business models by showing how much needs to be invested to acquire a paying customer. Optimising CAC is crucial for companies to ensure long-term growth by striking a balance between customer acquisition costs and customer lifetime value (CLV).