Customer Acquisition Cost (CAC)

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What it means

Total sales & marketing spend divided by new customers acquired.

Why it matters

Basic unit economics — must be well below LTV.

How to calculate — with Cawan's Shoes

CAC = S&M / New Customers. Cawan's DTC: $8M / 100k = $80.

What's at stake if you ignore this

Rising CAC with flat LTV = collapsing growth economics.