Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is a metric used in growth hacking to measure the cost of acquiring a new customer. It includes all the expenses incurred in the process of acquiring a customer, such as marketing and advertising costs, sales commissions, and other related expenses. CAC is an important metric for businesses to track as it helps them determine the effectiveness of their marketing and sales strategies. A low CAC indicates that a business is acquiring customers at a lower cost, which can lead to higher profits and growth.
Customer Acquisition Cost (CAC) at glance
- 1. CAC is the cost of acquiring a new customer.
- 2. It includes all marketing and sales expenses.
- 3. CAC is an important metric for measuring the effectiveness of marketing campaigns.
- 4. A low CAC is desirable as it means more efficient use of resources.
- 5. CAC can be reduced by optimizing marketing channels and improving conversion rates.