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What is New Customer Acquisition Cost?

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The cost to acquire a genuinely new customer, calculated against new customers only rather than total orders. Blending returning-customer revenue into your CAC makes acquisition look cheaper than it is and hides a leaky top of funnel. At Quad Lock our first orders were profitable after blended nCAC, which is what let us reinvest aggressively without raising.

Benchmark. Aim for a first order that is at least contribution-neutral after blended nCAC. If you need repeat purchases to break even on acquisition, your runway is hostage to retention.

Read Finance & Unit Economics Term Customer Acquisition Cost Term Contribution Margin Term Payback Period Term Lifetime Value
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