Leads and follow-up. Reviewed October 29, 2026
Customer acquisition cost
Also called: CAC
Customer acquisition cost is total sales and marketing spend over a period divided by the number of new customers won in it.
In practice
It includes the agency fee, the ad spend, the software, the time the owner spends on the phone, and the truck wrap. Most contractors only count the ad spend and think they are doing better than they are.
Paired with lifetime value it answers the only question that matters: can this business afford to buy a customer.
Related terms
- Customer lifetime valueCustomer lifetime value is the total revenue, or profit, one customer brings over every job they book, which is why a maintenance plan customer is worth far more than a one-time repair.
- Cost per acquisitionCost per acquisition is what it costs in marketing to win one paying customer, which for a contractor means a booked and completed job, not a lead.
Go deeper
More leads and follow-up terms
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