Formula
CAC = Total Marketing & Sales Expenses / Number of New Customers
Calculation Example
If a company spends $50,000 on marketing and gains 500 new customers, CAC = $50,000 / 500 = $100 per customer.
Data Source
Marketing budgets, CRM software, financial records
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
Should be lower than Customer Lifetime Value (CLV).
Minimum Acceptable Value
Varies by industry; a CAC higher than CLV indicates unprofitable customer acquisition.
Benchmark
SaaS ~ $300–$1,000, e-commerce ~ $10–$100, B2B services ~ $1,000+
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare channels)
How It Appears in Reports
Displayed alongside CLV to evaluate marketing efficiency.
Why Is This KPI Important?
Helps businesses measure the efficiency of their marketing and sales strategies.
Typical Problems and Limitations
Does not account for customer retention costs, seasonal variations can skew results.
Actions for Poor Results
Optimize marketing spend, focus on organic growth strategies, improve conversion rates.
Related KPIs
Customer Lifetime Value (CLV), Conversion Rate, Marketing ROI
Real-Life Examples
An e-commerce company reduced CAC by 30% by investing in influencer marketing instead of paid social ads.
Most Common Mistakes
Focusing only on reducing CAC without improving customer retention.
