> ## Documentation Index
> Fetch the complete documentation index at: https://wiki.platelunchcollective.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Customer Acquisition Cost (CAC)

> Customer acquisition cost (CAC) is the total cost of acquiring a new customer — calculated by dividing total sales and marketing spend by the number of new c...

*Measurement* · *Fractional CMO*

## Definition

Customer acquisition cost (CAC) is the total cost of acquiring a new customer — calculated by dividing total sales and marketing spend by the number of new customers acquired in a given period. It is a primary efficiency metric for marketing investment.

## Why It Matters for AI Search

[AI search visibility](https://www.platelunchcollective.com/services/consulting/ai-search-visibility) can contribute to CAC reduction by generating discovery that does not require per-click spend, though the scale and directness of this impact varies by industry and brand maturity. A brand consistently cited in AI responses to queries in its target market acquires customers through AI-assisted discovery without paying per click or per impression. [Fractional CMOs](https://www.platelunchcollective.com/services/consulting/fractional-cmo) helping clients build the business case for AI SEO investment often frame it as a CAC reduction strategy — AI search presence, once built, generates ongoing discovery at zero marginal cost per citation.

## Related Terms

<CardGroup cols={2}>
  <Card title="Brand citation rate" href="/ai-search-glossary/brand-citation-rate" />

  <Card title="Prompt visibility" href="/ai-search-glossary/prompt-visibility" />

  <Card title="Conversion funnel" href="/ai-search-glossary/conversion-funnel" />

  <Card title="Marketing infrastructure" href="/ai-search-glossary/marketing-infrastructure" />

  <Card title="Return on investment" href="/ai-search-glossary/return-on-investment" />
</CardGroup>

## Relevant Plate Lunch Collective Services

[Fractional CMO](https://www.platelunchcollective.com/services/consulting/fractional-cmo)  [AI SEO](https://www.platelunchcollective.com/services/ai-seo)