Marketing
CAC
What it costs to win one new customer.
Formula
Total marketing spend ÷ new customers
CAC, customer acquisition cost, is total marketing spend divided by the number of new customers won in the same period. Blended CAC counts every euro and every new customer rather than only what a platform claims, and it is judged against what a first order contributes, not against revenue.
Compare it against what a first order actually contributes, not against revenue. If the first order's CM2 is below CAC, you are buying customers at a loss and betting on the second order, which is a legitimate bet exactly as long as you know you are making it.
It moves with your product mix as well as your ad efficiency, which is why it belongs beside CM2 rather than on its own. A cheaper CAC that brings buyers of your thinnest product can be worse than an expensive one that does not.
The blended CAC calculator works it out beside MER and POAS, so the three ratios that belong together are read together.
Related terms