Your Customer Acquisition Cost or CAC is the total cost spent on acquiring new customers (marketing/sales expense) divided by the number of new customers acquired during that particular period.
If you invested $1000 in marketing/sales in a one month period and acquired 10 new customers as a direct result of that marketing and promotion, then your acquisition cost is $100 per new client.
All successful businesses measure their acquisition costs. Luckily, promotional activity on the web can be measured very accurately.
Make sure that the pricing of your products and services cover you CAC.
If you would like to know more in detail, contact us at cnelsonjeffers@breckshire.com.
- Get Customer Reviews and Rev up your Revenue - January 26, 2021
- 10 Highly Effective Ways to Promote Your Business with Social Media - January 24, 2021
- Keep Your Business’ Remarkable Reputation Online and Get More Customers - January 20, 2021
- The Importance of Customer Lifetime Value - January 18, 2021
- The Importance of Customer Lifetime Value - January 16, 2021
- Why You Should Optimize Your Website - January 13, 2021
- The Importance of Building Trust with Reputation Marketing - January 11, 2021
- Follow-up with your Potential Customers through Ad Retargeting - January 8, 2021
- Is Your Business Website Fully Optimized for the User Experience? - January 6, 2021
- Keyword Research is a Critical Success Factor in SEO - January 4, 2021