What is CAC (Customer Acquisition Cost)?

Understanding the true cost of acquiring customers is essential for profitable growth.

Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, advertising, and sales expenses divided by customers acquired.

How to Calculate CAC

CAC = Total Marketing & Sales Costs ÷ New Customers

CAC Benchmarks

  • E-commerce overall: $30-50
  • Skincare: $25-45
  • Supplements: $40-70
  • Fashion: $30-60

How Quiz Funnels Reduce CAC

  • 2-3x higher conversion: More customers from same traffic
  • Lower bounce rates: Engaging content keeps visitors
  • Better targeting: Quiz data improves retargeting efficiency

Brands using quiz funnels see 25-40% reduction in CAC.

See How Quizzes Reduce CAC

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Related Terms

LTV

Customer lifetime value.

Conversion Rate

Purchase completion rate.

Retargeting

Re-engaging past visitors.

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