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CAC (Customer Acquisition Cost)

💡 Quick Definition: The total sales and marketing expense required to acquire a single paying customer.

Detailed Explanation & Workplace Application

CAC is calculated by dividing total advertising, agency fees, and sales team salaries by the total number of new customers acquired during that specific period.

Practical Syntax / Framework Formula

CAC = (Total Ad Spend + Sales Salaries) / Number of New Customers Acquired
Target Benchmark: LTV / CAC Ratio > 3.0x
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