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Customer economics
Customer acquisition cost
Total sales and marketing cost in a period divided by new customers won in it. What it costs to buy a customer, fully loaded.
Owned by: Sales analystTest band: Sales analyst
The formula
CAC = Sales & marketing spend ÷ New customers
In practice
Include rep salaries, commission, tools, and marketing — not just ad spend. Lag it: this quarter's customers were sourced by last quarter's spend.
The kind of thing the test asks
- Fully loaded CAC should include…
More in customer economics
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