Customer acquisition cost is the amount a business spends to acquire a new customer over a defined period or within a measured campaign.
How it works in retail
A basic calculation divides the included acquisition costs by the number of new customers acquired. Teams must specify which marketing, sales and related costs are included.
A retail example
A campaign costs $2,000 and brings in 100 new customers. On that campaign-cost basis, CAC is $20.
What to keep in mind
Paid-media CAC is narrower than fully loaded CAC. Compare it with customer contribution over time, using consistent periods and avoiding double-counting customers across channels.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.