CAC: Why It’s Important + How To Calculate It

CAC

Customer acquisition cost is the cost associated with convincing a consumer to buy your product or service, including research, marketing, and advertising costs.

Why CAC Is Important

Customer Acquisition Cost (CAC) simplifies complex customer acquisition costs and strategies into numbers that can be compared with each other, so you know how much you are spending on each customer you gain.

Calculating CAC

Divide you yearly sales and marketing cost by the number of customers you gain in a year. Or use the CAC calculator available at www.upgrowth.in  by swiping up

Calculation CAC: The Details

There are 4 steps to calculating CAC. First comes attribution, or knowing where the customer came from. Next is blending, or calculating CAC via multiple channels. Then comes payback - how long does it take for the customer to pay back their CAC in the form of a purchase?

To learn more about CAC and how to calculate it