Customer Acquisition Cost (CAC)
Total marketing and sales investment divided by new customers acquired in a period.
Customer Acquisition Cost (CAC) is the total fully-loaded marketing and sales spend required to acquire one new customer in a given period. CAC includes paid media, content production, sales compensation, MarTech tooling, and overhead. Healthy CAC depends on industry — SaaS targets a 3:1+ LTV:CAC ratio, e-commerce often 2:1, professional services typically 4:1+. CAC payback period (months to recover CAC from gross profit) is equally important: under 12 months is excellent, 18+ months signals trouble. Empire325 reduces CAC through funnel diagnosis, channel reallocation, and conversion optimization, typically 20-40% within 90 days.
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Performance Analytics
Marketing measurement, MMM, and incrementality testing to prove ROAS at the channel and creative level.
Explore Performance Analytics →Related terms
Marketing Attribution
The practice of assigning credit for a conversion to specific marketing touchpoints across the customer journey.
Customer Lifetime Value (LTV)
Total revenue (or gross profit) a single customer generates over the entire relationship.
Conversion Rate Optimization (CRO)
The systematic discipline of increasing the percentage of visitors who complete a desired action.
Search Engine Optimization (SEO)
The practice of optimizing websites to rank highly in organic search results.