how to calculate customer acquisition cost

Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked.

Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.

Today, many web-based companies can engage in highly targeted campaigns and track consumers as they progress from interested leads to long-lasting loyal customers. In this environment, the CAC metric is used by both companies and investors.

https://blog.kissmetrics.com/customer-acquisition-cost/