Let’s say. for example. you spent $2.000 on a new marketing campaign. From that campaign you got 100 new paying customers. Your CAC is $20 for this campaign (your costs/number of customers). which means you spent an average of $20 to get each of your new customers. Your CAC will help you determine whether these marketing efforts are worth it bas on how much you are spending to get each customer and how much profit you are making from them. What is a good CAC? A good CAC can look different for every company.
If you have customers who continue to purchase
depending on the value of their products africa email list and how much their customers spend. A $20 CAC might be a great number for a tech company with an average sale of $600. but not so great for a craft supply company with an average sale of $50. To determine if your CAC is a good number for your business. consider the following: Do your new customers make just one purchase or do they keep coming back for more? If you have customers who continue to purchase from you after you initially acquir them.
Adding up all the expenses that went
you will want to consider customer lifetime value (CLV). This Phone Lead metric can be more valuable than your CAC because it determines how much a customer contributes to your overall revenue. If you spend $20 on a customer who continues to make multiple purchases throughout the year. that $20 was well spent. How much does each customer earn on average? Adding up all the expenses that went into what the customer paid – employees. supplier costs. marketing. etc. – do you make enough profit to justify your CAC? If you only get about $5.