Customer Acquisition Cost (CAC)
Customer Acquisition Cost
What is Customer Acquisition Cost (CAC)?
Customer Acquisition Cost (CAC) is the total cost associated with convincing a customer to buy a product/service. It is the total cost to acquire a customer.
How to Determine Customer Acquisition Cost?
To calculate the customer acquisition cost, CAC, you take your entire cost of sales and marketing over a given period, including sales salaries and advertising expenses, and divide it by the number of customers that you acquired in that period.
How to Reduce Customer Acquisition Cost?
- Focus on increasing conversion rates
- Implement marketing automation to improve ROI
- Focus on customer retention
- Optimize traffic sources
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