Growth Metrics
CAC (Customer Acquisition Cost)
The average cost to acquire one new paying customer.
Customer Acquisition Cost (CAC) is the total sales and marketing spend divided by the number of new customers acquired in that period. A $10,000 marketing spend that brings 100 customers = $100 CAC. The LTV:CAC ratio is the most important unit economics metric -- a ratio above 3:1 means each customer generates 3x what they cost to acquire. Businesses with low CAC (especially those with organic/viral acquisition) command premium valuations on Enterpricr.