What is CAC(Customer acquisition cost)?

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Definition

CAC (Customer Acquisition Cost ) is the cost of convincing someone to buy your product or service.

Information 

CAC can be calculated by simply dividing all the costs spent on acquiring more customers (marketing expenses) by the number of customers acquired in the period the money was spent.

By comparing LTV and CAC you will understand the ROI period for each channel and redistribute your marketing budget more effectively.


Useful links

https://www.owox.com/blog/articles/digital-marketing-metrics-and-kpis/

https://www.owox.com/blog/success-stories/boodmo/

https://www.owox.com/blog/articles/interview-with-reese-garcia/