AFFILIATE MARKETING GLOSSARY

Customer acquisition cost (CAC)

The average sales and marketing cost of gaining one new customer.

Customer acquisition cost (CAC)

The average sales and marketing cost of gaining one new customer.

For a chosen period, divide acquisition spending by the number of new customers gained. Teams compare CAC with customer value to judge whether a channel can support growth.

Example

A company spends $10,000 on acquisition and gains 100 customers, so its CAC is $100.