Customer Acquisition Cost (CAC) is the amount of money it costs you to acquire a paying customer. CAC is calculated by dividing the total amount of money spent on acquiring customers by the number of customers acquired.
CAC is a very important metric for any business because it determines how much money you're spending to acquire new customers. If you're spending too much money on customer acquisition, you might be better off spending that money on customer retention or product development.
CAC is also a very important metric for investors because it gives them an idea of how much money they can expect to make from a new customer.