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Concept8 min read
Customer Acquisition Cost (CAC)
The fully loaded cost of acquiring a new customer — marketing spend plus sales expense divided by new customers won. CAC is the numerator of every subscription business's unit economics.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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