Glossary
Customer Acquisition Cost (CAC)
The average cost to acquire one new customer through a creator campaign — spend divided by attributed new customers.
Also known as: CAC · Acquisition cost
Customer acquisition cost (CAC) is the average cost to acquire one new customer: campaign spend divided by the number of new customers it attributably brought in.
In creator commerce, CAC is computed per cluster using first-party attribution, so you learn which audience segments acquire customers cheaply rather than reading a single blended number.
CAC and LTV together
CAC is only half the picture — it has to be read against lifetime value. A higher CAC can be the right call if the cluster's LTV cohort repeats. The ratio of LTV to CAC is the durable signal of a healthy creator channel.