What is CAC?

CAC stands for Customer Acquisition Cost, which is the total cost of sales and marketing efforts required to acquire a new customer. It's a crucial metric for businesses to understand the profitability of their customer acquisition strategies. A lower CAC generally indicates more efficient marketing and sales. "Customer Average Conversion" is incorrect because while conversion is part of the acquisition process, CAC is a cost, not a conversion rate. "Customer Annual Cost" is incorrect as CAC focuses on the cost to acquire, not the ongoing cost of serving a customer over a year. "Customer Affinity Conversion" is incorrect; "affinity" is related to customer loyalty, not the direct cost of acquisition.