Customer Acquisition Cost

Customer Acquisition Cost (CAC) is calculated by dividing total sales and marketing spend by the number of new customers acquired in a given period. It is the denominator in the LTV:CAC equation and a critical input for unit economics modeling.

CAC varies dramatically by channel. Organic search and referral programs often deliver the lowest CAC, while paid advertising and outbound sales carry higher costs. Blended CAC can be misleading; always segment by channel to find efficiency opportunities.

GenGrowth helps reduce CAC by automating content creation and SEO optimization, two of the most cost-effective acquisition channels. By generating high-quality programmatic content at scale, teams can drive organic traffic without proportional increases in headcount or ad spend.