CAC (Customer Acquisition Cost)
The average cost to acquire one new customer.
CAC divides total sales and marketing spend by the number of new customers gained in a period. It reveals go-to-market efficiency and, combined with LTV, shows whether growth is sustainable. Investors scrutinise CAC and its payback period.
Examples
£10k spend acquiring 100 customers gives a £100 CAC. — A startup lowers CAC by improving conversion rates.
How it relates to The Startup Foundry
Efficient acquisition supports the Scalability pillar. The Foundry’s modules help you sharpen unit economics before pitching.