What is Customer Acquisition Cost?
A definition of Customer Acquisition Cost
“Customer Acquisition Cost (CAC) is a metric that calculates the total cost incurred by a company to acquire a new customer, including marketing and sales expenses.”

Business Glossary > What is Customer Acquisition Cost?
Examples of Customer Acquisition Cost in a Sentence:
Our company aims to reduce Customer Acquisition Costs through digital marketing.
The Customer Acquisition Cost for our new product is higher than expected.
Tracking Customer Acquisition Cost helps in optimizing marketing strategies.
Why is Customer Acquisition Cost Important in Business?
Understanding Customer Acquisition Cost is crucial for businesses to ensure their growth strategies are cost-effective. It helps in assessing the viability of marketing campaigns and the overall profitability of acquiring customers.
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Associated Terms
Here are some associated business terms and synonyms for “Customer Acquisition Cost”:
- Customer Purchase Cost
- New Client Cost
- Customer Buying Expense
Amazon’s Customer Acquisition Cost
Amazon invests heavily in reducing its Customer Acquisition Cost through efficient online marketing strategies. By leveraging its vast customer data and optimizing its sales funnel, Amazon minimizes its long-term Customer Acquisition Cost while maximizing customer value.
Final Notes on Customer Acquisition Cost
Understanding and managing Customer Acquisition Cost is vital for maintaining a balance between cost efficiency and customer satisfaction, which directly impacts a company’s profitability and market position.
This has been a definition of Customer Acquisition Cost meaning.
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