User Acquisition Cost (UAC)

Definition

The cost to acquire one new user, calculated by dividing total acquisition spending by users acquired. It's basically your efficiency metric, and you're probably underestimating it.

Example Usage

Our UAC is $8, which seems reasonable until marketing realizes half these users never actually use the product.

Origin

From mobile app marketing, later adopted across digital products

Fun Fact

UAC for profitable products usually correlates with customer lifetime value, an equation many startups haven't figured out.

Source: Mobile and SaaS Marketing

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clickthrough

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