Digital Marketing KPI | Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC)

Measure to total amount of capital it costs to gain a new customer.

Guide to Marketing KPIs & Metrics

Sign up and get 5 minute KPI lessons delivered to your inbox every day.

Formula

Total marketing spend on customer acquisition/Total new customers

Services

Excel Dashboard | Excel Logo HubSpot Dashboard | HubSpot logo Marketo Dashboard | Marketo Logo Pardot Dashboard | Pardot logo Pipedrive Dashboard | Pipedrive logo QuickBooks Dashboard | Quickbooks logo Salesforce Dashboard | Salesforce logo Xero Dashboard | Xero Logo

Role

C-Level, VP / Director

Overview

By adding up sales and marketing costs for a given period, and dividing them by the number of new customers for that period, this metric gives your team insight into how much it costs your company to acquire a new customer. CAC measurements can include varying variable and fixed costs, depending on the depth of insight you want on your acquisition costs. CAC metrics can also be determined on an individual account basis, by breaking down costs more granularly.

Formula

Total marketing spend on customer acquisition/Total new customers

Reporting frequency

Monthly

Example of KPI target

$142 per acquisition

Audience

Marketing Manager, Sales Manager

Variations

Average customer acquisition cost

Cost to acquire a new customer