Customer acquisition cost (CAC) calculates the total expense required to acquire a new customer, including media spend, technology, and labour. It’s one of the most important metrics in evaluating marketing efficiency.
In B2B marketing, CAC is typically assessed alongside customer lifetime value (CLV) to determine sustainability. A favourable CAC:CLV ratio indicates scalable growth, while an inflated ratio suggests overspending or misaligned targeting.
Monitoring CAC by channel and campaign type helps leadership align marketing investment with business profitability.