Customer acquisition cost (CAC) is the average amount a business spends to gain one new customer. For small businesses, tracking CAC can help answer practical questions: Are marketing efforts paying off? Which channel brings customers at a sustainable cost? Is it time to change an offer or improve follow-up? The calculation is simple, but it is only useful when you include the right costs and compare it with revenue and retention.Use the customer acquisition cost formulaThe basic customer acquisition cost formula is total sales and marketing costs divided by the number of new customers acquired during the same period. If [...]