Join Dataflo @ SaaS Insider's India 2022 on May 26 - 27
Register Now

Customer Acquisition Cost

Customer Acquisition Cost

Customer Acquisition Cost (CAC) is the total money you spend on sales and marketing efforts to acquire a new customer.

Why is CAC important?

Calculating Customer Acquisition Cost(CAC) is crucial to understand how much money you are spending to acquire a new customer. CAC tells you the efficacy of different channels and help you determine which marketing channels are giving poor ROI and which ones you should be doubling down on.

How do you calculate CAC?

CAC is calculated by dividing the total cost spent on marketing and sales by the total number of customers acquired in the period of money spent.

For example,

If you spend $1200 on marketing and acquire 20 leads from a LinkedIn ads campaign, it means the customer acquisition cost in the particular channel is $60.

Cut through the data clutter, today. Take Dataflo for a spin.

Thanks for signing up! We'll reach out to you shortly.
Oops! Something went wrong while submitting the form.
TRY FOR FREE
Trial signups
Trial signups

Number of users who have signed up for your free trial for any given time period.

Learn more
Conversion rate
Conversion rate

Conversion rate is the percentage of free trial users who ultimately become your paid customers.

Learn more
Avg. Lifetime Value
Avg. Lifetime Value

Lifetime Value or Customer Lifetime Value is average deal value you are likely to earn from any customer during the time they are using your product.

Learn more