CAC
What is CAC (Customer Acquisition Cost)?
It is the Cost of Acquiring a Customer. It is a metric that tells us the total cost of all actions we have taken to persuade a potential customer to purchase our product or service. More specifically, we learn:
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how much each customer costs us on average,
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what costs we will incur if we decide to expand our business,
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what is the average profit from each customer.
We can measure the customer acquisition cost in the context of the entire company, but also for individual marketing campaigns.
How can we improve the CAC metric?
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Focus on Conversion Rate Optimization (CRO).
Ensure that visitors to your website can easily become potential customers and then actual customers. Improve and test your website to make it as accessible, intuitive, and user-friendly as possible, thereby encouraging purchases.
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Consider added value.
Think about what might be useful for your customers. Implementing a new feature? Improving an existing product? Expanding your offer? Analyze their requests and suggestions - perhaps they are telling you directly what they expect.
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Introduce a referral program.
If one of your customers refers you to a friend who buys your product/service, the CAC in this case will be $0. It is worth rewarding our existing customers for referrals so they feel engaged and do it even more willingly.
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Streamline your sales cycle.
Try to reduce the length of your sales process, for example through automation offered by Sellizer. This will increase the number of processes that can take place during the year. Also use CRM and customer acquisition tools.
Read also:
Useful links:
https://business.trustedshops.pl/blog/3-pomijane-wskazniki-efektywnosci/
https://assistars.pl/metryki/ile-kosztuje-nas-zdobycie-klienta-czyli-wskaznik-cac/