Startup Metrics
Customer Acquisition Cost
Definition
What is Customer Acquisition Cost?
Sales and marketing cost required to acquire one customer under the stated method.
Example in practice
How This Looks in Practice
₦5 million spent to gain 500 customers gives ₦10,000 CAC.
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Related Terms
Startup Metrics
Burn Rate
The rate at which a company spends cash, commonly measured monthly.
Startup MetricsCash Runway
The estimated time before cash runs out at the current burn rate.
Startup MetricsMonthly Recurring Revenue
Recurring subscription revenue normalised to one month.
Personal FinanceSavings
Money set aside rather than spent, often for emergencies or future goals.