Metrics and measurement
Customer acquisition cost (CAC, also cost per acquisition or CPA) is what a company spends on average, across marketing and sales, to win one new customer.
On its own it prices the entry, while the margin that entry brings sits in another figure, customer lifetime value. The two are read together.
An example
A company sees cost per acquisition rise across every channel in the same quarter, and the first guess is that the agency is underperforming. When it rises everywhere at once the cause is usually market saturation, the number of competitors buying the same space: change the channel mix before changing the number.
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