Analytics
Last updated: February 17, 2026
Customer Acquisition Cost
Customer Acquisition Cost is the total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of new customers. If you spend $10,000 on marketing and sales in a month and gain 50 new customers, your CAC is $200. Compare CAC to Customer Lifetime Value. If CLV is significantly higher than CAC, your business model works. If they're close or CAC is higher, you need to either reduce acquisition costs or increase customer value.
Definition
The total cost of acquiring a new customer, including all marketing and sales expenses divided by the number of new customers. If you spend $10,000 on marketing and sales in a month and gain 50 new customers, your CAC is $200. Compare CAC to Customer Lifetime Value. If CLV is significantly higher than CAC, your business model works. If they're close or CAC is higher, you need to either reduce acquisition costs or increase customer value.
Related Terms
More Analytics Terms
Core Web Vitals
Three specific metrics Google uses to measure user experience: Largest Contentful Paint (loading speed), Interaction to Next Paint (interactivity), and Cumulative Layout Shift (visual stability). Google uses these as ranking factors. Sites that pass Core Web Vitals get a small ranking boost. Sites that fail may rank lower. Check yours in Google Search Console or PageSpeed Insights.
Google Search Console
A free Google tool that shows how your site appears in search results. Which queries bring up your pages, your average ranking position, click-through rates, and technical issues Google found while crawling. If Google Analytics tells you what happens on your site, Search Console tells you what happens before people get there. Every website owner should have this set up and check it monthly at minimum.
Google Analytics 4 (GA4)
The current version of Google's free web analytics platform. It replaced Universal Analytics in 2023 with an event-based tracking model. GA4 tracks users across devices, integrates with Google Ads, and uses machine learning to fill in data gaps from privacy restrictions. The learning curve is steeper than the old version, but it's more powerful and better suited to modern privacy-first web browsing.
Conversion Tracking
The process of recording when a website visitor completes a valuable action. Form submissions, purchases, phone calls, chat initiations. Without conversion tracking, you know how many people visit but not how many become customers. Setting this up is the single most important analytics task for any business website. Everything else is just counting eyeballs.
Conversion Rate
The percentage of visitors who complete a desired action. If 1,000 people visit your page and 30 fill out your form, your conversion rate is 3%. This is arguably the most important metric for any business website because it directly ties traffic to business results. Average conversion rates hover around 2-3% for most industries, but well-optimized pages can hit 10% or higher.