What Goes Into Customer Acquisition Costs?Īs mentioned above, the CAC metric is important to two parties: companies and investors. In this article, we will explain the CAC metric in more detail, how you can measure it, and what steps you can take to improve it. In this environment, the CAC metric is used by both companies and investors.ĬAC, as you probably know, is the cost of convincing a potential customer to buy a product or service. Today, many web-based companies can engage in highly targeted campaigns and track consumers as they progress from interested leads to long-lasting loyal customers. Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process. Customer acquisition cost (CAC) is a metric that has been growing with the emergence of Internet companies and web-based advertising campaigns that can be tracked.
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