CAC
Customer Acquisition Cost: the average cost to acquire a new customer.
Definition
CAC stands for Customer Acquisition Cost. It compares the cost of acquiring new customers with the number of new customers won and shows whether growth is economically sustainable.
Also known as: Customer Acquisition Cost
Difference from CPO
CPO measures cost per order, while CAC measures cost per new customer. This distinction matters for repeat purchases, subscriptions, and customer lifetime value.
A campaign CPO can look efficient even when mostly existing customers buy. For growth targets, the new-customer share is critical.
Campaign steering
CAC should always be read with contribution margin, AOV, retention, and lifetime value.
Influencer campaigns can show higher short-term CAC while still creating stronger long-term cohorts when brand fit and community trust are high.



