What is CAC? Customer acquisition cost and how to work it out
The ArabyBot teamOfficial Meta partner · written from our own platform dataOn this page 4
The short answer
Customer acquisition cost is everything you spent to attract customers over a period, from ads and marketer commissions to first-order discounts, divided by the new customers in that period. Spend 10,000 and win 200 new customers, and each cost 50.
Also asked as: «cac يعني ايه» · «تكلفة اكتساب العميل cac» · «تكلفة الحصول على عميل»
Why does Customer acquisition cost matter to a seller?
Because a customer who cost you 50 and bought once at a profit of 40 is a loss, while one who comes back and spends more is a gain. Always compare it with lifetime value, and lower it by raising repeat customers, not only by cutting ads.
Customer acquisition cost in ArabyBot
In ArabyBot every contact has its source and every store order the ad it came from, so you work out the cost per customer for each door separately. To keep customers: how to keep customers.
Frequently asked questions
How does CAC differ from CPA?
CPA is the cost of any action you define, such as an order or sign-up, possibly from an existing customer; CAC is the cost of a new customer only.
What is a good value-to-cost ratio?
The more lifetime value exceeds acquisition cost the better; if they are close, you are working for no profit.
Related terms
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