HubSpot Metric
CRM & Marketing
CAC = Total Sales & Marketing Spend / New Customers Acquired
Customer acquisition cost (CAC) is the total sales and marketing expenditure divided by the number of new customers acquired in the same period. It quantifies the investment required to convert a prospect into a paying customer.
Full guide: definition, formula, and benchmarksCustomer Acquisition Cost
Customer acquisition cost (CAC) is the total sales and marketing expenditure divided by the number of new customers acquired in the same period. It quantifies the investment required to convert a prospect into a paying customer.
How to calculate customer acquisition cost
Why customer acquisition cost matters for HubSpot users
CAC determines whether your growth is economically sustainable. When acquisition cost exceeds the value a customer delivers, every new customer accelerates losses rather than building the business.
HubSpot users can decompose CAC by channel, campaign, and sales rep to identify the most efficient acquisition paths. Tracking CAC alongside customer lifetime value provides the essential ratio that governs investment decisions across marketing and sales.
Understand and act on customer acquisition cost with KPI Tree
Connect HubSpot deal and campaign data to KPI Tree via your warehouse, blending in marketing spend from your finance systems. Build a CAC tree that decomposes cost by channel and campaign.
Assign marketing and finance co-ownership with alerts when CAC rises beyond acceptable LTV ratios for any channel or segment.
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Related HubSpot metrics
Customer Lifetime Value
CRM & MarketingMetric Definition
LTV = Average Revenue Per Customer x Average Customer Lifespan
Customer lifetime value (LTV) estimates the total revenue a customer will generate across the entire duration of their relationship with your business. For HubSpot users, it aggregates deal values, renewals, and upsells tracked in the CRM.
Lead Conversion Rate
CRM & MarketingMetric Definition
Lead Conversion Rate = (Converted Leads / Total Leads) x 100
Lead conversion rate measures the percentage of leads that progress to a qualified opportunity or customer status. It captures the effectiveness of your entire lead nurturing and qualification process from initial capture through to sales acceptance.
Marketing Attribution Analysis
CRM & MarketingMetric Definition
Marketing attribution analysis assigns credit for revenue and conversions to the marketing touchpoints that influenced them. Using HubSpot attribution reporting, it maps the customer journey across channels, campaigns, and content to quantify each interaction's contribution to closed revenue.
Lead Source Performance
CRM & MarketingMetric Definition
Lead source performance measures the volume, quality, and conversion rate of leads generated by each acquisition channel tracked in HubSpot. It compares organic search, paid advertising, referrals, social media, and direct traffic to determine which sources deliver the best return.
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