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B2B Sales

Customer Acquisition Cost

CAC
Definition
Customer acquisition cost (CAC) is the total sales and marketing spend needed to win one new customer in a given period.

How to calculate CAC

CAC = total sales and marketing costs ÷ number of new customers won

Include salaries, tools, agency fees and ad spend for the same period. Example: €120,000 in costs and 8 new customers gives a CAC of €15,000.

CAC in context

CAC only makes sense next to customer lifetime value (LTV). A common B2B benchmark is an LTV:CAC ratio of at least 3:1 and a payback period of 12–18 months or less.

How VAEKST can help

Want more qualified leads without blowing up your CAC? See how we approach B2B lead generation. Book a meeting to talk it through with one of our growth experts.

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B2B Lead Generation

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Related terms

Total Addressable Market

Total addressable market (TAM) is the total revenue opportunity available if a product or service won 100% of its target market.

Year-over-Year Growth

Year-over-year (YoY) growth compares a metric in one period with the same period the year before, expressed as a percentage.

Lead Scoring

Lead scoring is a method of ranking leads with points based on how well they fit your ICP and how engaged they are, so sales can prioritise the most promising ones.
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