What does CAC stand for in customer success management?

The term CAC stands for Customer Acquisition Cost in the context of customer success management. This metric is crucial for businesses as it represents the total cost incurred to acquire a new customer. This includes all expenses related to marketing, sales, and other operational costs that contribute to bringing a new customer on board.

Understanding CAC is essential for organizations as it helps in evaluating the efficiency of their customer acquisition strategies and in determining the overall profitability of the customer lifecycle. By analyzing the CAC against the lifetime value of a customer (LTV), businesses can make informed decisions about how much they should invest in acquiring new customers and whether their current strategies are sustainable in the long run.

The other options, while they may sound relevant, do not accurately define CAC within the framework of customer success management.