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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Why it matters
CAC is the number that decides whether you can grow. A business with low CAC can spend more and accelerate; one with high CAC stalls even with a good product.
🧮 A worked example
You spent $2,500 in a month and acquired 20 customers — a $125 CAC. But if $1,500 of that went to paid ads producing 4 customers and $1,000 to groups producing 16, group CAC is $62 and paid is $375.
⚠️ The common mistake
Leaving out the cost of your time. Two hours a day of manual posting is part of CAC just as much as media spend, and in small businesses it is usually the largest component.
Full guide on the blog
Want to go deeper on this term?
ROI on Facebook Group Marketing — How to Calculate It and Why It Matters
How much are you actually earning back from every dollar you spend on Group marketing? Here's the methodology for calculating ROI accurately.
Read the full guide🔗 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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