Glossary/Metrics

    CAC (Customer Acquisition Cost)

    The total sales and marketing cost to acquire one new customer.

    Definition

    CAC is the sum of all sales and marketing spend over a period divided by the number of new customers won in that period.

    Want booked sales meetings on your calendar?

    Month to month. Scoped on a 20 minute call.

    Why it matters

    CAC decides whether an outbound motion is profitable. If your CAC is above LTV, you cannot scale spend.

    How it works

    • Add up all sales and marketing spend for the period
    • Divide by new customers signed
    • Compare to gross LTV to get a payback period

    Want us to run this for you?

    Lead Engine builds outbound engines for B2B teams. Cold calling, cold email, and appointment setting, run by US based reps.

    Book a Strategy Call

    Related terms

    LTV (Customer Lifetime Value)Sales FunnelSQL (Sales Qualified Lead)
    Back to full glossary (66 terms)