Glossary
What is Customer Acquisition Cost (CAC) ?
CAC is the total cost to acquire one paying customer, including all marketing and sales expenses. It's a broader measure than CPI or CPA.
Overview
Customer Acquisition Cost (CAC): Definition & Meaning | Segwise Glossary
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Overview
CAC is the total cost to acquire one paying customer, including all marketing and sales expenses.
In mobile UA, CAC specifically measures cost-per-paying-user rather than cost-per-install (CPI) or cost-per-action (CPA).
CAC is a business-level metric used in financial modeling and investor reporting, while CPI and CPA are operational metrics used for daily campaign optimization.
The relationship between them is: CPI × (1/install-to-payer conversion rate) × (allocated overhead) = CAC.
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