Within the commercial universe, there are several different sales metrics. Customer acquisition cost (CAC) is one of the most important, as it allows you to analyze whether the company is on the right track to gain and retain new customers.
Additionally, the customer acquisition cost formula is critical for sales and marketing teams to make strategic decisions.
Stay tuned for a closer look at these key ideas for effective customer relationship management.
Summary
Customer acquisition is the process of attracting and persuading potential buyers to purchase products or services. Customer acquisition cost (CAC) is calculated by dividing japan telegram marketing and sales investments by the number of customers acquired in a specific period.
CAC relates to Customer Lifetime Value (LTV), which represents the net revenue generated by a buyer during their relationship with the company. To achieve business success, revenue must exceed investment, therefore, the ideal is to achieve a low CAC and a high LTV.
Reducing CAC involves studying and monitoring marketing and sales strategies to focus investments on what is most effective. For example, you can segment to attract appropriate profiles, implement loyalty programs, and use automation to optimize resources.
Related content
What are the customer experience indicators: TOP 5
Sales Metrics: 6 KPIs to Measure Your Business Performance
What is cost of sales and how to calculate it? (FORMULAS)
In this article you will learn:
What is customer acquisition?
What is customer acquisition cost?
Customer Acquisition Cost Calculation