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Customer Acquisition Cost (CAC)
from CRM
Metrics type
Diagnostic
Units of measure
Money
Direction
Less - better
Check frequency
Weekly
Description
The average cost incurred to acquire a new customer, encompassing various expenses such as marketing, advertising, and promotional efforts to attract and convert potential customers.
Why it is important
Calculating the customer acquisition cost is fundamental for understanding the efficiency of acquiring new customers.
This metric guides strategic decisions, budget allocations, and marketing channel optimizations, ensuring cost-effective customer acquisition and maximizing the return on investment, impacting overall business profitability.
This metric guides strategic decisions, budget allocations, and marketing channel optimizations, ensuring cost-effective customer acquisition and maximizing the return on investment, impacting overall business profitability.
Formula
Total Costs for Customer Acquisition / Number of New Customers Acquired
Calculation example
If the total cost incurred for customer acquisition is $20,000, and 200 new customers were acquired,
Customer Acquisition Cost (CAC) = $20,000 / 200 = $100
Customer Acquisition Cost (CAC) = $20,000 / 200 = $100
Affected metrics
n/a
Affecting metrics
n/a
Connecting metrics
New Customers
Marketing Costs
Marketing Costs
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Suggested slices for dashboards
by Acquisition Channel
by Marketing Campaign
by Customer Demographics
by Product Category
by Geographic Location
by Marketing Campaign
by Customer Demographics
by Product Category
by Geographic Location
The revenue impact pathway
Available in JetMetrics Lite only
Questions to be Answered
1. How does the CAC differ between customers acquired through organic channels versus paid advertising?
2. What is the correlation between changes in marketing spend and fluctuations in CAC?
3. How does the CAC vary based on the customer's geographic location or region?
4. Are there specific marketing channels that consistently result in a lower CAC?
5. What impact does the introduction of new advertising platforms or strategies have on the overall CAC?
6. How does the CAC change for customers acquired during major marketing campaigns or promotional periods?
7. Is there a correlation between the CAC and the user's engagement level or lifetime value on the platform?
2. What is the correlation between changes in marketing spend and fluctuations in CAC?
3. How does the CAC vary based on the customer's geographic location or region?
4. Are there specific marketing channels that consistently result in a lower CAC?
5. What impact does the introduction of new advertising platforms or strategies have on the overall CAC?
6. How does the CAC change for customers acquired during major marketing campaigns or promotional periods?
7. Is there a correlation between the CAC and the user's engagement level or lifetime value on the platform?
Possible causes of worsening
n/a
Tactics to improve this metric
Explore in JetMetrics Lite or Ask professionals in the Community
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