What is Customer Acquisition Cost (CAC)? And How to Reduce it! Know more.

What is Customer Acquisition Cost (CAC)?

• CAC is the total expense of   acquiring a single customer • Directly impacts your overall   profitability • Varies from company to company • A 10% reduction in CAC can lead to   a 23% increase in profit

What is Included in CAC?

• Salaries of marketers or salespeople • Ad spending • Marketing costs • Expenditure on promotional events.

Why is it so important for your business?

Helps businesses measure the success of - A new product Service Acts as a base of future plannings Plan budgets & discover ways to allocate the money

How to Reduce Your CAC?

• Don’t spend more than 33% of your   average customer lifetime value • Ensure You’re Selling to the Right   Audiences • Accurately Track Customers • Retarget Customers • Align your Ads Properly

How to Reduce Your CAC? (Contd.)

Optimize Landing Pages Use Organic Marketing Shorten your Sales Cycle Retain Customers Improve your Sales Funnel Use AI

Read The Full Blog Now!