Customer acquisition cost (CAC) is a business's total cost to acquire a new customer. In a contact center context, CAC includes the marketing, sales, and operational expenses of turning a lead into a paying customer. Understanding CAC helps businesses measure their customer outreach strategies' return on investment (ROI) and improve decision-making around budget, staffing, and technology.

How to Calculate CAC

The basic formula for CAC is:
               CAC = Total Sales and Marketing Costs / Number of New Customers Acquired
For example, if a company spends $10,000 on marketing and sales activities monthly and gains 100 new customers, the CAC is $100.\

Why CAC Matters for Contact Centers

Tracking CAC allows businesses to evaluate how effectively their contact center operations support customer growth. A high CAC may suggest inefficiencies in lead handling or outreach methods, while a lower CAC can indicate cost-effective performance.
  • Support Lead Conversion: Outbound agents follow up with leads, explain products, and promote offers to drive sales.
  • Handle Inbound Inquiries: Trained agents convert incoming calls and queries into paying customers.
  • Improve Conversion Rates: High-performing contact centers help turn more leads into customers, reducing overall CAC.
  • Enhance Customer Retention: Excellent service encourages repeat business, reducing the need for constant new customer acquisition.
  • Boost Customer Lifetime Value (CLV): Satisfied customers stay longer and spend more, helping offset CAC over time.

Factors That Affect CAC in Contact Centers

  1. Marketing Campaign Costs: These include digital ads, promotions, or events that drive calls or inquiries.
  2. Sales Team Resources: Agent salaries, commissions, and tools used to convert leads.
  3. Technology and Tools: Cost of CRM systems, auto dialers, or CTI solutions that support customer interactions.
  4. Training and Onboarding: These are Expenses to prepare agents to handle sales and service calls effectively.

How to Improve CAC

  • Use call routing and workforce optimization to handle leads efficiently.
  • Implement CTI to reduce call handling time and improve conversion rates.
  • Train agents to improve first-call resolution and sales effectiveness.
  • Monitor blocked and missed calls to avoid losing valuable leads.
Customer acquisition cost is an essential metric for any business that uses a contact center to support growth. By understanding and managing CAC, companies can improve efficiency, reduce costs, and get more value from customer engagement efforts.