Back to Glossary

Customer Acquisition Cost (CAC)

A metric that measures the total expense incurred by a business to acquire a new customer. This cost includes all the marketing and sales expenses related to attracting and converting potential customers into paying clients. CAC is an essential metric for assessing the efficiency and effectiveness of a company's customer acquisition strategies and determining the return on investment (ROI) for marketing and sales efforts.

‍

To calculate CAC, divide the total costs of sales and marketing by the number of new customers acquired within a specific period.

Related Terms

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) quantifies predictable yearly revenue from subscriptions. It excludes one-time fees, helping businesses assess financial health, growth, and stability for strategic planning and benchmarking.

Customer Churn (Churn Rate)

Churn rate measures the percentage of customers who leave a business over time. It's key for retention and growth, calculated as lost customers divided by starting customers, then multiplied by 100.

Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) estimates total revenue from a customer over their relationship. It guides acquisition and retention strategies, calculated as purchase value × frequency × customer lifespan.

Monthly Recurring Revenue (MRR)

Monthly Recurring Revenue (MRR) is the predictable revenue from subscriptions each month, including new sign-ups, renewals, and upsells, providing insight into a company's financial health and growth.

Hire

Agent Frank,

To Achieve

10x

Pipeline Coverage

Let Agent Frank handle prospecting, outreach & booking meetings while you focus on closing deals!

Hire Agent Frank

24/7 Automated Prospecting

Auto-Pilot & Co-Pilot Modes

Fully Customizable Agent

Available in 20+ Languages

Dedicated Account Manager

Shared Slack Channel

Industry Best Practice Implementation

Weekly release update: Apr Week 2

Updates from last week! 👀 Here’s what’s new in Salesforge 📬 & Agent Frank 🤖 1. New Feature Drop: Opt-Out Rate Metric is LIVE! Another slick upgrade just landed—we’ve added a new metric card for Opt-Out Rate in both Sequences and the Agent Frank detailed view in Salesforge! Now you can: See exactly how many prospects are opting out of their outreach Spot sequences that might be too aggressive or missing the mark Tweak messaging and targeting for better engagement (and fewer unsubscribes) This is a big win for deliverability, compliance, and keeping outreach sharp. 2. New Feature Drop: Product Email Notifications Are LIVE! 🚀 We just launched a brand-new layer of real-time visibility — Product Email Notifications are now LIVE in Salesforge! Here’s what you will now get alerted about, straight to their inbox: Mailbox(es) disconnected – so they can reconnect before it hurts deliverability New reply received – excluding OOO and bounces, only the real ones Running out of credits – whether it’s sending, validation, or anything else You can opt-in or opt-out of these notifications anytime from their settings. No more guessing. No more blind spots. Just clean, actionable updates to stay on top of their game. New free tools on salesforge.ai 🔨 The Forge Sales GPT: Use our ChatGPT bot to create cold email sequences based on your ICP and value proposition. We're still working on more features & workflow improvements across all forges in April! 🌱