How To Measure Customer Acquisition Cost [with Examples]
Customer Acquisition Cost (CAC): How To Calculate and Reduce
Doing regular marketing activities can be a major expense for any company. It’s not just the cost of paid activities, but also day-to-day expenses like operational costs and using marketing tools.Â
But how can you be sure that you’re using your money wisely? Well, there’s a neat little metric that aligns closely with your marketing efforts. It’s called the Customer Acquisition Cost. If you’re wondering how to measure it and, more importantly, how to reduce it, this article is for you.
Read on to learn how to measure the effectiveness of your operations accurately!
What is customer acquisition cost (CAC)?
Let’s start with the basic definition of CAC.