CAC is the cost of acquiring new customers. Average customer acquisition cost can be calculated by taking  two main factors into account: the number of new customers attracted and the amount of money invested to get these clients.

To make growth sustainable, high revenue and your business profitable, reduce the cost of acquiring new customers by constantly examining your marketing costs and engagement level of your customers with you.

CAC defines if the business will shut Down, exist or thrive. Company’s profitability is determined by looking at the difference between the money that can be extracted from customers and how much money was used in the extraction process. Value and take care of your customers or else your competitors will.