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?

  1. Focus on increasing conversion rates
  2. Implement marketing automation to improve ROI
  3. Focus on customer retention
  4. Optimize traffic sources
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