Sales Glossary > Customer Acquisition
Customer acquisition is the process of gaining new customers from generating leads to closing a sale.
This process typically refers to the sales funnel as a whole. Having a sustainable, repeatable process of attracting and converting new customers is vital for company growth.
- Customer acquisition cost (CAC) is the total cost of sales and marketing efforts required to get a new customer. This usually includes all paid marketing spend, employee salaries and commissions, as well as the cost of software you rely on, production or creative efforts, etc. It can be calculated by dividing all marketing and sales expenses by the number of customers acquired within the given period.
- Cost per acquisition (CPA) is the total cost of acquiring a new customer using a certain channel or specific campaign. It is also a common pricing model for most online advertising platforms.