What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost, or CAC, is a mobile app metric used to calculate the cost of acquiring a new user. The metric includes all costs associated with acquiring new users, from sales to paid and organic marketing.
What is CAC Formula?
To calculate Customer Acquisition Cost (CAC), add up all these costs and divide the result by the number of acquired users.
Why is CAC important for app businesses?
Monitoring CAC helps app businesses make informed business and budgeting decisions. App marketers use this metric to assess the cost-effectiveness of their marketing strategies and optimize them for better results. When it comes to developers, understanding CAC helps them build and refine apps to bring more value to their users.
