CAC divides acquisition costs over a defined period by new customers acquired in that period. Decide whether costs include only media or also people and tools.
The demo keeps spend fixed while new-customer count changes. Align periods and channel scope in both numerator and denominator before comparing.
A low CAC can still be unprofitable if customers leave quickly. Check payback time and lifetime value alongside it.
When to use
Use it to assess acquisition unit economics and scaling room.