What does CAC stand for in marketing terms?

Customer Acquisition Cost (CAC) is a crucial metric in marketing that measures the total expenditure required to acquire a new customer. This includes various expenses such as marketing, sales, and advertising costs associated with converting a prospective customer into a paying one. Understanding CAC helps businesses evaluate the efficiency of their marketing strategies and sales efforts. By analyzing CAC, companies can determine if the investment in acquiring new customers is justified by the potential revenue those customers will generate over time.

The other options reference terms that are not widely recognized or used within marketing contexts in the same way that CAC is. While "Consumer Analysis Criteria" might suggest methods for evaluating customer behavior, it does not encompass the financial scope of acquiring customers. "Customer Activity Chart" could imply tracking customer interactions, but it does not directly relate to cost measurement. "Capital Assessment Calculation" seems to focus on financial evaluations more broadly, rather than the specific metric for acquiring customers. Therefore, the importance of CAC lies in its role as a definitive measure of the cost effectiveness of customer acquisition strategies in the marketing field.