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CAC is the total cost of acquiring new customers. This includes all marketing and sales expenses incurred in order to convert a prospect into a paying customer.
CAC is a key metric for growth marketers, as it allows them to track and optimize their customer acquisition efforts. By reducing CAC, they can acquire more customers while spending less money.
CAC is important because it allows you to track your customer acquisition efforts and optimize them for maximum efficiency. By reducing your CAC, you can acquire more customers while spending less money.
CAC is also a key metric for determining your company's profitability. If your CAC is higher than your LTV (lifetime value of a customer), then you are losing money on each customer you acquire.
To calculate your CAC, simply divide your total marketing and sales expenses by the number of new customers acquired.
For example, if you spent $100,000 on marketing and sales last month and acquired 100 new customers, your CAC would be $1,000.
There are a number of ways to reduce your CAC. Some common methods include:
By reducing your CAC, you can acquire more customers while spending less money.
There are many benefits to reducing your CAC. Some of the most notable benefits include:
Reducing your CAC is a key metric for growth marketers, as it allows them to track and optimize their customer acquisition efforts. By reducing CAC, they can acquire more customers while spending less money.