Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is the total cost of turning a prospect into a paying customer.

This includes marketing spend, sales team time, tools, and yes, partnership costs. The lower your CAC, the more efficiently you’re growing.

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A strong partner network can help lower CAC by tapping into warm introductions and shared trust. It’s one of the key metrics for measuring the effectiveness of ecosystem-led growth.