Dictionary term

Acquisition Cost

The total sales and marketing expense required to win a new customer, commonly measured as customer acquisition cost.

The total sales and marketing expense required to win a new customer, commonly measured as customer acquisition cost.

Why Acquisition Cost matters

Understanding this term helps teams align sales, operations, finance, and technology around how business customers evaluate, purchase, and receive products or services.

How It Applies to E-Commerce

Commerce analytics connect advertising spend and first orders to acquisition cost by channel.

How It Applies to ERP Systems

ERP financial actuals can supply cost data used in acquisition-cost reporting.

How It Applies to CRM Systems

CRM attributes sales activities and opportunities to acquired customers for cost and performance analysis.