CAC stands for "Customer Acquisition Cost". It refers to the total price a business spends to acquire a new customer. It includes everything from advertising and marketing costs to sales and everything in between.
To make it more concrete: If a company spent $10,000 on marketing for a month and acquired 100 new customers in the same period, the company's CAC would be $10 per customer.
For any business, the goal is not only to attract new customers, but to do so cost-effectively. If it costs more to acquire a customer than the revenue that customer brings in, it can be detrimental to the business in the long run. For online businesses, where competition is fierce and profits can be low, having an in-depth understanding of CAC is crucial.
3 benefits of a low CAC:
A professional marketing agency like Webamp can help you with all this and more. We'll work with you to create a marketing strategy that can bring your CAC down so you can invest your money elsewhere.
Whether you're a generalist or a marketing specialist, our specialists have put together some great advice for you on our blog.
Learn more at Webamp Academy.