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How to know customer acquisition cost (CAC)?
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[QUOTE="Frenzybliss, post: 298660, member: 94892"] Understanding customer acquisition cost (CAC) is essential for any business that wants to grow and stay competitive. CAC is the amount of money you spend to acquire a new customer, and it can be divided into two categories: direct costs and indirect costs. Direct costs include any paid advertisement, discounts, or incentives given to attract new customers. Indirect costs refer to the resources spent on marketing activities outside of paid ads, such as developing content to reach new audiences, hosting events, or using software to track customer data. To calculate the actual cost of acquiring a new customer, you must add up the total amount spent on both direct and indirect costs. You can then divide this number by the total number of customers acquired in a given period to get your average customer acquisition cost. It’s important to note that CAC can vary depending on the type of customer and the industry you’re in. For example, a business may spend more money on acquiring high-value customers than low-value ones. However, understanding your customer acquisition cost is essential to accurately measure the success of any customer acquisition strategy. [/QUOTE]
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How to know customer acquisition cost (CAC)?
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