CAC Recovery Time refers to the period it takes for a business to recoup the expenses incurred in acquiring a new customer through their subsequent revenue contributions. It measures the efficiency of customer acquisition efforts, with shorter recovery times indicating faster return on investment (ROI).For example, consider a B2B software company that offers a project management tool.Suppose the company spends $10,000 on marketing and sales efforts to acquire new customers in a month.During that same month, these new customers generate $20,000 in revenue for the company.The CAC recovery time would be one month because the revenue generated from the new customers covers the acquisition costs within that period.This indicates that the company is efficiently recouping its customer acquisition expenses and achieving a rapid return on investment.