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Customer Acquisition Cost (CAC)

Definition

The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses. Optimising the ratio of customer lifetime value to CAC (LTV:CAC) is a central challenge for growth businesses and a key metric scrutinised by investors.

Related Terms

Cap Table (Capitalisation Table) Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio Capitalisation of Intangibles

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