What is CAC (Customer Acquisition Cost)? Explaining the types, calculation methods, and balance with LTV!

CAC stands for Customer Acquisition Cost and is the cost it costs to acquire one new customer.

CAC can be categorized into three types base on customer acquisition method:

1. Paid CAC (customer acquisition cost through paid measures).
This refers to the CAC for customers acquire through paid advertising and promotional activities.

②Organic CAC (cost to acquire customers through organic inflow)
This refers to the CAC for customers who naturally come in. Through organic search brand awareness, word of mouth etc. Organic CAC can be improve through long-term efforts such as content marketing and SEO measures.

③Blendd CAC (customer acquisition cost combined)

Blended CAC is the sum of Paid CAC and Organic CAC and is use to understand your overall customer acquisition costs .

How to calculate CAC
CAC (customer acquisition cost) is calculate lebanon whatsapp number data by dividing the amount you spend on marketing by the number of new customers you acquire .

CAC (Customer Acquisition Cost) = Marketing Costs ÷ Number of New Customers Acquire

In this case, your CAC or the cost to acquire one new customer is 1000 yen.

 

The costs includd in the CAC will vary depending inbound marketing is developed in 4 stages throughout its process: on the nature of your business but typically include the following:

Advertising costs (Google ads, Facebook ads, display ads, etc.)
Labor costs (marketing staff salaries, outsourcing costs, etc.)
Production costs (landing page production, creative production, etc.)
Event costs (exhibition participation, seminar hosting, etc.)
Tool costs (marketing automation, CRM, etc.)
To calculate an accurate CAC, it is important to properly understand these costs and accurately measure the number of new customers.

Managing these costs properly and optimizing CAC is key to increasing business profitability .

The Importance of CAC
CAC is a very important indicator for phone number thailand measuring the effectiveness of marketing activities and evaluating the profitability of your business.

CAC can be usd to inform business decision-making.

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