Customer acquisition cost measures the cost of gaining a new paying customer. A basic calculation divides sales and marketing acquisition costs by the number of new customers acquired in the chosen period. Count people who became customers, rather than all enquiries or bookings from existing customers. Source: Stripe: Customer acquisition cost

Agree what goes into the calculation

For an agency report, list the advertising, campaign production and sales work included in the cost figure. Choose a reporting period that allows time for enquiries to become bookings. Keep these choices beside the calculation so colleagues can compare campaigns on the same basis.

Make the example clear

Suppose £3,000 of acquisition costs brings in 30 new paying customers. The CAC is £100. This is a hypothetical calculation, not a target. Compare the result with the income and costs associated with those customers before deciding how much to spend on another campaign.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.