The total sales and marketing cost required to earn a new customer over a specific time period.
The Customer Acquisition Costs (CAC) are the average recruitment costs that you pay for a new customer. This KPI is mainly interesting because it shows you from when you have recouped the costs for recruiting a customer. For example, bringing in a new customer can cost € 250. If you offer a service that costs € 50 per month, you will have recouped the costs after five months. You calculate the CAC by adding together the costs of marketing and sales (including salaries) of a month. To calculate the average cost per new customer, divide the CAC by the number of new customers of the period: CAC = (Marketing & Sales costs + Salaries Marketing and Sales) / (Number of new customers) For example: you spent € 5,000 on advertisements and selling costs, and the salary costs were € 7,500 for the same month. When you have acquired 50 new customers, the CAC is: (€ 5,000 + € 7,500) / 50 = € 250 per customer.