Full definition
CAC = total marketing spend / number of new customers. For example: you spend $3,000 on marketing and gain 20 customers — CAC = $150. Rule of thumb: LTV should be at least 3x CAC.
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TL;DR — In one line
How much it costs to win a new customer
🔗 Related terms
More terms in Analytics & Metrics
Impressions
How many times your post appeared on someone's screen
Reach
The number of unique people who saw your post
Engagement Rate
The percentage of viewers who commented, liked, or shared
Conversion Rate
The percentage of visitors who complete a desired action
LTV (Lifetime Value)
How much an average customer is worth over the life of the relationship
Churn Rate
The percentage of customers who leave each month
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