What is CAC, or CoA?

What is CAC, or CoA?

Customer Acquisition Cost (CAC), or Cost of Acquisition (CoA), is the total expense associated with acquiring a new client or customer.  For example, CoA would include the purchase of an item, costs associated with shipping, installation, and costs to get it running. An example of CoAin sales would be the costs of marketing, promotional items, and sales team salary. CoA is pivotal for growing companies to calculate to better understand how to manage and spend their money. Similarly, CAC refers to the cost of acquiring a single customer or client. 

For more information on this topic, check out this article from our friends at Investopedia.

https://www.investopedia.com/terms/c/costofacquisition.asp

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