Customer Acquisition Cost

The cost of convincing a potential customer to buy a product or a service. [1] [2] [3] [4] [5]
With software, customers usually prefer the self-service approach; so lower CAC ultimately means you can spend more on product; remove human touch fom the sales process as much as possible.


[2] KAPLAN, S.N., and STRÖMBERG, P. 2004. Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. .

[3] Maxwell, A. L., Jeffrey, S. A., & Lévesque, M. (2011). Business angel early stage decision making. Journal of Business Venturing, 26(2), 212–225.

[4] Rea, R. H. (1989). Factors affecting success and failure of seed capital/start-up negotiations. Journal of Business Venturing, 4(2), 149–158.

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