Glossary

Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) in e-commerce refers to the total cost of acquiring a new customer.

Customer Acquisition Cost (CAC) in e-commerce refers to the total cost of acquiring a new customer. This includes marketing efforts, advertising, sales promotions, and other expenses related to attracting and converting a consumer into a buying customer. Typically, CAC is calculated by dividing the total costs associated with acquisition by the total number of new customers over a certain time period. CAC should not be confused with Cost Per Order, which includes all orders.

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