But what is the CAC? How to set it up?
CAC or #CustomerAcquisitionCost is simply the cost incurred to acquire a new customer. To simplify, how much do you spend to get a new customer and therefore what is your ROI.
Is your CAC high? Is it low? That’s the whole point.
Optimizing your CAC is therefore essential for the execution of your digital strategy.
Calculate your CAC
CAC is calculated by taking into account #commercial and #marketing costs. The addition of these two amounts divided by the number of your new customers represents your CAC.
If it’s low it’s excellent, if it’s high you’ll have to get to work. But a CAC that is too low is not good news either. There needs to be a happy medium.
Setting up the CAC
If we each have our own #logic and way of seeing things. Let’s not forget that there is not one intelligence but several! There are techniques that can hardly be neglected for this implementation.
#Analysis of marketing channels
Invest in the best performing marketing channels to maximize #ROI.
#Identification of segments
Select the most profitable customer segmentations and target the audience with the highest conversion potential.
#Use of marketing automation
Marketing automation is an effective way to reduce your costs but also to obtain real-time analyzes of customer behavior and how to optimize your leads.
#Optimize your customer experience
Word of mouth and customer loyalty can lead to the acquisition of new customers at a lower cost. The investment in this experience must also be taken into account.
#OrganicvsPaid
Achieve a fair balance of organic and paid content. The resources used for your content must not increase your CAC
In conclusion
The CAC is a balancing act between the financial and marketing part. One does not go without the other and its implementation requires attention and a global understanding of the company and its objectives!
Please feel free to share your ideas and experiences on how you manage and implement your CAC.
Our eBooster.ch team and I would be happy to discuss this with you.
The second part of this post will address the subject of CAC combined with a second indicator, that of #CustomerLifetimeValue.
#digitalmarketing #customercentric #marketing #acquisition
