What is customer acquisition cost?

   Customer acquisition cost, or CAC in marketing parlance, refers to the amount of money a business must pay to acquire a new customer. Organizations are increasingly using web analytics to make data-driven choices, which has increased the use of CAC. Measuring their CAC helps businesses determine if they are receiving their money’s worth when they invest in increasing their customer base, whether they are paying for potential customers to click on banner ads or investing in articles and graphic material.


Internet marketing strategies have a fine-grained ability to target particular customer demographics. This is not very old. In the past, businesses had to cast a wide net when it came to advertising, which required directing their marketing materials at a wide range of potential clients. It was hoped that at least a few new clients would result from this. Because of the lack of clarity in this technique, it was normal for businesses to see modest returns on their marketing expenditures.

How can you improve your customer acquisition cost?

·    Improve Lead Conversion Rate

·    Add Value to your offering

·    Use a CRM.

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