Enterprise Software Research for Execs and Financial Pros

Enterprise Software Research for Execs and Financial Pros

Understanding Customer Acquisition Costs for Software Companies

Growth at all Costs, but not at any price?

Doug Martin's avatar
Doug Martin
Oct 07, 2025
∙ Paid

Customer Acquisition Cost (CAC) is the total expense a company has when it gains a new customer. The math goes like this: divide a company’s total sales and marketing costs by the number of new paying customers within a specific timeframe. For software publishers, this is usually an absurdly high figure that investors, executives, and even prospects hav…

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