A metric that measures the total expense incurred by a business to acquire a new customer. This cost includes all the marketing and sales expenses related to attracting and converting potential customers into paying clients. CAC is an essential metric for assessing the efficiency and effectiveness of a company's customer acquisition strategies and determining the return on investment (ROI) for marketing and sales efforts.

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To calculate CAC, divide the total costs of sales and marketing by the number of new customers acquired within a specific period.