CAC (Customer Acquisition Cost)
The total money you spend on marketing and sales divided by the number of new paying customers you got.
Definition
CAC answers the most important question in marketing: how much does one new customer cost me? If you spent $3,000 on ads and your sales rep last month, and brought in 10 new customers, your CAC is $300.
You need to know this because if your customers only pay you $150 once and disappear, you are losing money on every sale. If they pay you $300 a month for years, you are printing money. CAC is meaningless without comparing it to LTV (customer lifetime value). The ratio of LTV to CAC tells you whether your business actually works. We help you calculate and lower both.
Why it matters in Miami
Miami's high ad costs (driven by tourism, hospitality, and real estate spending) mean local CAC is often 2-3x the national average. Knowing your number is survival.
Example
A Sunny Isles personal injury attorney calculates a CAC of $1,200 per new case but an average case value of $18,000, a clear green light to spend more on ads.
Related terms
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