CONVERTEC

Marketing Glossary

CAC (Customer Acquisition Cost)

The full cost of acquiring a new customer.

Definition

CAC includes media, tooling and team, not just ad spend. Compared against LTV, it tells you whether growth is sustainable.

Why it matters

We aim for an LTV:CAC of 3:1 or better before we recommend scaling spend.

Frequently asked questions

How does Convertec use CAC (Customer Acquisition Cost)?
We aim for an LTV:CAC of 3:1 or better before we recommend scaling spend.

Explore more

ROAS (Return on Ad Spend)CPA (Cost Per Acquisition)CTR (Click-Through Rate)CPC (Cost Per Click)SEO (Search Engine Optimisation)SEM (Search Engine Marketing)PPC (Pay-Per-Click)CRO (Conversion Rate Optimisation)

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