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  5. /CAC (Customer Acquisition Cost)

CAC (Customer Acquisition Cost)

The total cost to acquire a customer. For more accurate CAC, include costs like salaries, tools, outsourcing, and other acquisition-related overhead.

Last updated: December 12, 2025

Definition

The total cost to acquire a customer. For more accurate CAC, include costs like salaries, tools, outsourcing, and other acquisition-related overhead.

More context

CAC is the cost required to acquire one customer (or a consistently defined conversion). Strategic Growth Hacking treats CAC as a decision metric: if CAC is rising without corresponding value, acquisition scale becomes a trap.

Why it matters

CAC determines whether growth compounds profitably or compounds losses.

How to use it

Define the acquisition outcome clearly, include relevant overhead costs, and review CAC alongside retention/revenue to avoid false positives.

Common pitfalls

Comparing CAC across channels with inconsistent definitions, or excluding real costs like labor and tools.

Related terms

  • Blended CAC — Customer acquisition cost calculated in a blended way (not per-channel attribution), often used when attribution is incomplete.
  • Acquisition Profitability — A way to understand whether your acquisition investment is economically sound (what you get back vs. what you spend).
  • CRM — Customer relationship management system. Often the source of truth for leads and conversions (and useful for “combined conversions”).
  • Combined Conversions — A combined view of conversions (often from your CRM) used as a reliable signal when channel-level attribution is noisy.

Related reading

  • Get Started: analysis foundation
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