Recurring Purchases
In the case of businesses sales, the. CAC must be lower than the Lifetime Value (LTV), which indicates the average customer spend while making the recurring purchase.
For example, your company sells management software that costs R$100.00 per month and customers stay with the company for an average of 5 months. In this case, the LTV for each person is R$500.00. If the CAC is R$800.00, there is a loss of R$300.00 with each new purchase.
Therefore, to understand whether the investment is happening in a healthy way, simply evaluate the clientele’s spending on your business and, if the difference is positive, there is good financial health and the actions are correct.
Why should I calculate my company’s CAC?
The initial advantage of calculating Customer Acquisition Cost is knowing how much the company spends to acquire each customer and whether this investment is healthy for the business. In addition, there are other benefits that the company can derive from CAC.
The first step is to hong kong email list calculate it and understand whether it is satisfactory according to the company’s strategies. Now, the CAC serves as a basis for understanding which points can be optimiz in the actions, to ruce this value.
Furthermore, in the startup market, for example, it is common in business investment evaluation processes to consider this value, as it indicates the viability and profitability of the business.
How can I improve my CAC?
The objective of the agb directory actions should be to ruce CAC, optimizing investments and generating more and more customers. Some actions that can be taken to achieve this are:
Invest in how to develop a successful online advertising strategy Inbound Marketing
This strategy has been increasingly adopt due to its ability to generate prictable, scalable and sustainable results . This is done through a strategy that encourages the production of content to attract consumers organically and not only through paid mia.