Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is a key business metric that represents the total cost a company spends to acquire a new customer. A lower CAC is better, as it means the business is more efficient at turning marketing spend into profitable customers. Web performance directly impacts CAC; a faster website improves conversion rates and Quality Scores for ads, which means more customers are acquired for the same marketing budget, thereby lowering the average cost per acquisition.