How do I measure Customer Acquisition Cost (CAC)?
An example of an AI chatbot conversation about measuring Customer Acquisition Cost (CAC).
How do I measure Customer Acquisition Cost (CAC)?
To measure CAC, divide your total sales and marketing expenses by the number of new customers acquired in a specific period.
What expenses should I include in the calculation?
Include all costs related to marketing, sales team salaries, advertising, and any tools or software used for customer acquisition.
Is there a benchmark for a good CAC?
A good CAC varies by industry, but generally, it should be 1/3 of the Customer Lifetime Value (CLV) for a sustainable business.
How can I reduce my CAC?
You can reduce CAC by optimizing your marketing strategies, improving your sales funnel, and enhancing customer retention.
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