Glossary

CAC (Customer Acquisition Cost)

CAC (Customer Acquisition Cost) is the total marketing and sales spend to win one new customer over a period, divided by the number of new customers.

In the Context of Japan-Korea Marketing

Where CPA is a per-conversion cost, CAC includes sales and staffing. In cross-border work, compare it against LTV to judge payback period.

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Related Terms

CPA (Cost Per Acquisition)

Cost Per Acquisition (CPA) is the average cost incurred to acquire one customer or conversion through a marketing campaign. It is calculated by dividing total campaign spend by the number of conversions.

LTV (Lifetime Value)

LTV (Lifetime Value) is the total revenue or contribution a customer is expected to generate across their entire relationship with a brand.

ROAS (Return on Ad Spend)

Return on Ad Spend (ROAS) measures the revenue generated for every unit of currency spent on advertising. A ROAS of 300% means you earn 3 units of revenue for every 1 unit spent on ads.

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