What does customer acquisition cost measure?

CAC estimates the cost to acquire a new customer.

Start playing free

  1. Revenue from every customer
  2. Cost to keep existing customers
  3. Acquisition spending per new customer ✔

Why: A simple CAC calculation divides acquisition spending by new customers acquired. Teams must define which marketing and sales costs they include so comparisons stay consistent.

Huh, didn't know that: Blended CAC combines acquisition channels, while channel CAC separates them.

The dad joke
Why did marketing count customers? It wanted to know the cost of company.
Like this card?
Play the game

References

Answer: Acquisition spending per new customer. A simple CAC calculation divides acquisition spending by new customers acquired. Teams must define which marketing and sales costs they include so comparisons stay consistent.

  1. Remitly investor presentation filed with the SEC www.sec.gov/Archives/edgar/data/1782170/000178217022000023/remitlyirdeck030222.htm
    direct marketing expenses deployed to acquire new customers
    Checked 2026-10-11.

Think this answer is wrong? Tap "Challenge this answer" on the card in the game and tell us why.

Test yourself in the game