Customer acquisition cost (CAC) is a metric that has been growing in use, along with the emergence of Internet companies and web-based advertising campaigns that can be tracked.
Traditionally, a company had to engage in shotgun style advertising and find methods to track consumers through the decision-making process.
Today, many web-based companies can engage in highly targeted campaigns and track consumers as they progress from interested leads to long-lasting loyal customers. In this environment, the CAC metric is used by both companies and investors.
CAC, as you probably know, is the cost of convincing a potential customer to buy a product or service. In this article, we will explain the CAC metric in more detail, how you can measure it, and what steps you can take to improve it.
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