Acquisition costs, also known as customer acquisition costs (CAC), are the costs associated with acquiring new customers. These costs can include advertising, sales and marketing, and other related expenses. The official business definition of acquisition costs is the total cost of acquiring a new customer, including all associated expenses such as advertising, sales and marketing, and other related costs. It is important to note that acquisition costs are not the same as customer lifetime value (CLV), which is the total value of a customer over the lifetime of their relationship with a business. Acquisition costs are a key metric for businesses to measure the success of their customer acquisition efforts, as it provides an indication of how much it costs to acquire a new customer. By tracking acquisition costs, businesses can identify areas of improvement and ensure that their customer acquisition efforts are cost-effective.
