In this quick explainer, Per Welinder demystifies two pieces of business slang—CAC and CAGR. CAC is the cost to acquire a customer, and CAGR is the compound annual growth rate, used to measure long-term industry or business growth. Both are vital for understanding performance and making smart investment or marketing decisions.

Key Topics

• What is CAC (Customer Acquisition Cost)?
• What is CAGR (Compound Annual Growth Rate)?
• How these metrics are used in business and investing
• Why CAC matters for marketing strategy
• How CAGR helps evaluate industry potential

Quotes

• “Customer acquisition cost is just: what does it take to get a customer to buy?”
• “CAGR is really helpful if you want to invest—especially when it’s a high percentage.”
• “These numbers help you decide where to put your time and money.”