This makes it possible to identify not only what works, but also the reasons why each result is generated. Among the various metrics that exist, one is essential for monitoring business performance: CAC.
CAC, or Customer Acquisition Cost, is the metric that indicates the financial performance of the business, assessing whether the investments made by the sales and marketing areas are generating real profits for the company.
We have gathered the main information about CAC and how to use it in your company. Keep reading to find out.
What is CAC?
CAC is an acronym in English, which stands for Customer Acquisition Cost. Literally translated into Portuguese, it means Customer Acquisition Cost, that is, how much the company spends to acquire a new consumer.
To define CAC, it is necessary to
Have clear information about the business, from the number of visits to its online pages, to the effective purchase and cambodia email list customer retention in the case of recurring sales. In addition, it is essential to know the costs involved in each company action.
How to calculate Customer Acquisition Cost?
To calculate the company’s CAC, you must divide the sum of all investments made to acquire customers in a given period of time by the total number of customers gained in the same period.
Simply put, if during one month your company spent R$10,000.00 on marketing actions to acquire new customers and the Sales area acquired 10 customers, your CAC will be R$1,000.00.
The formula is as follows
CAC = (Sum of all investments made) (Number of customers acquired.)
The calculation is a few months ago the simple, however, to have the correct number that will actually direct the afb directory company’s efforts, it is necessary to first have exact control of all actions related to customer acquisition.
Items considered in the metric