Customer Acquisition Cost Improve Your Marketing.

Hello I have started new series and I'm going to explain to you KPIs and for today I choose Customer Acquisition Cost

let’s get the video by no time lost.

Customer Acquisition Cost

It’s the most important KPI we should track is Customer Acquisition Cost. we called CAC in shortly.

What is the Customer Acquisition Cost
Why we should track ?

Customer Acquisition Cost is related to these question how much money we spend to acquire new customer. ?

How much money we spend to convenience people to buy our service or product ?

End of the day we try to find new way to decrease the cost ?

First we need to calculate it . So Cost / Acquisition.

It’s improving Return On Investment

Let’s consider You have 3 different marketing campaign.We called it A, B and C marketing campaign. Your team decided running ads in Google and Facebook.

You spend 100 $and acquisition is 10 from Google Also You spend 1200$ dolar and acquisition is 12 $ from Facebook

I think it’s really question ? Which Channel is for you to generate revenue ?

The answer is Google :)

Maybe you can ask okey but how can ı improve my Facebook revenue it’s another video’s subject :)

Profibility and Profit Margin

Once when you realize the cost value of customer for you. You can improve it.

for example

Customer value is 50 $ for a business and you know that. And If you choose wrong channel like facebook you have to spend much more money that you need.

Sometimes, campaign budget doesn’t fit your needs. At this point you have to choose the right channel to generate revenue.