Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost to acquire a new customers. It includes all expenses related to sales and marketing efforts used to attract and convert potential customers.

Components typically included in CAC:

• Marketing Costs: Advertising, content creation, SEO, campaigns, etc.

• Sales Costs: Salaries, commissions, bonuses, and tools used by the sales team.

• Software and Tools: CRM software, marketing automation tools, analytics platforms.

• Overhead Costs: Office space, utilities, and administrative expenses (if directly tied to sales and marketing).

Calculating CAC

CAC inputs can be customized based on your desired input.

• Option 1: Using designated field values (Ex. Sales, marketing, SDR departments (Recommended).

• Option 2: GL Account Subtype: Operating Expense - Sales & Marketing. This account subtype is set within the Chart of Accounts

Once you have determined how you'd like to calculation, you can set this customization by going to Organization Settings > Reporting > CAC.