Metrics
CAC (Customer Acquisition Cost)
The total cost to acquire one new customer.
Definition
CAC is how much you spend, across sales and marketing, to win a single new customer. It's the number you weigh against customer lifetime value to know whether growth is sustainable.
Formula
CAC = Total sales & marketing spend ÷ New customers acquired
Example
Spend AED 20,000 in a month and gain 80 customers, and your CAC is AED 250. If each customer is worth AED 900 in lifetime profit, that's a healthy 3.6:1 LTV:CAC ratio.