Customer Acquisition Cost

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Companies can use Customer Acquisition Cost (CAC) to measure the amount of money spent to acquire a single customer, inform budgeting and resource allocation decisions, and optimize customer acquisition strategies for maximum impact.

What is Customer Acquisition Cost ?

Customer Acquisition Cost (CAC) in e-commerce is an important metric that measures the amount of money spent in order to acquire a single customer. This cost includes marketing expenses, advertising costs, and any other expenses related to obtaining new customers, such as promotional discounts, referral programs, and customer incentives. It is a critical measure for e-commerce businesses, as it helps them to evaluate their customer acquisition strategies and identify areas where costs can be reduced. CAC is also useful in informing decisions around budgeting and resource allocation, allowing companies to make more informed decisions about how to best utilize their resources to acquire new customers. By better understanding their CAC and how it affects their business, companies can optimize their customer acquisition strategies for maximum impact.