01 May Customer Acquisition Cost – May’s Free MBTN Tutorial
Customer Acquisition Cost (CAC) is a crucial metric that managers can use to better understand the cost of growing revenues through obtaining new customers. CAC is the total cost of sales and marketing efforts divided by the number of new customers acquired in a specific period. In simple terms, CAC is the average amount of money a business spends to acquire a new customer.
Knowing the CAC is essential for any business to make informed decisions on their marketing budget and to determine the profitability of their customer acquisition efforts. When a business spends more on customer acquisition than it generates in revenue over the lifetime value of those customers, it’s not a sustainable business model.
The CAC module will soon be part of MBTN’s Customer Lifetime Value Certification. Look for an announcement later this year regarding details on this exciting development!
The free link has expired, but check out this month’s tutorial under the Business Education Resources Blog.
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We hope you enjoy this month’s tutorial on the Customer Acquisition Cost
Your Team at MBTN Academy