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This is especially useful when your business is just starting out. Why CAC is important for your business Assuming the goal of your business is to make money, you'll want to understand the cost of acquiring customers or potential customers. CAC is how much you have to pay to convert a user, convert a lead to a customer, or convert a customer to a lifetime customer. Why-Customer-Acquisition-Cost-Is-Important-For-Your-Business If you want to generate a certain amount of revenue in a certain period of time, you must understand the cost of customers to achieve this goal. In other words, this metric helps you estimate your profitability and helps you find out if your business model is working.
How to Calculate Customer Acquisition Cost How you calculate CAC depends on the type of marketing you Vietnam Email List are doing. , it's important to understand the general idea of CAC. It is the cost of acquiring a customer or potential customer over the lifetime of that customer. Understand the costs of acquiring a customer You can't ignore the cost of customer acquisition because it can be expensive to acquire customers. The three main costs of customer acquisition are:

Visitor Acquisition Cost: The cost of attracting a visitor to your website. cost of attracting a customer to your website. SEO Costs – The costs associated with adding search engine optimization (SEO) to your site. Marketing costs: The costs associated with acquiring customers through marketing campaigns. Your SEO and marketing costs may be relatively low initially, but that's because your site is newer and you can afford to spend less up front. Costs can skyrocket if you are using more advanced SEO and marketing strategies. SEO has become more competitive. CAC calculation The first step in calculating your customer acquisition cost is to find your average acquisition cost.
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