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Customer Acquisition Cost (CAC)

What is Customer Acquisition Cost (CAC)

Definition

Customer Acquisition Cost is the cost associated in convincing a customer to buy a product/service. This cost is incurred by the organization to convince a potential customer. This is an important business metric.
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In order for any company to be profitable, it is very important to make sure that the CAC is significantly lower than the Lifetime Value (LTV) of a customer.

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