Customer Acquisition Cost (CAC)

Calculate the total cost of winning a new customer to evaluate marketing efficiency and ensure sustainable unit economics across all channels.

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Definition

Customer Acquisition Cost (CAC)

Calculate the total cost of winning a new customer to evaluate marketing efficiency and ensure sustainable unit economics across all channels.

Why this matters

Example 1

Example 2

Example 3

How to apply

Customer Acquisition Cost (CAC)

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Playbooks

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Playbook

Compound growth

Meet Random Rick, Specialist Steve and Solid Sarah. See three approaches to growth and why only one compounds. Understand the model that shows how improvements multiply. Apply systematic thinking to double revenue.

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Compound growth