The average cost to acquire one new customer.
Definition
The average cost to acquire one new customer.
Why it matters
It tells you whether growth is affordable.
How it works
CAC = total acquisition spend ÷ new customers
Example
₹2,00,000 spend for 400 customers gives CAC of ₹500.
Common mistake
Including repeat customers in the count.
Using it in practice
Review CAC alongside related metrics rather than in isolation, and agree definitions across your team so reports stay consistent.
Need help putting this into practice?
Gravmo's team can plan and run this for you. See Performance Marketing or message us on WhatsApp.
Ask on WhatsAppFrequently asked questions
Is CAC the most important metric?
No single metric tells the whole story; use it with business outcomes.
How often should we review CAC?
Monthly for most businesses, weekly during active campaigns.
