As a business, it costs money to gain clientele. Between paying for staff, advertising efforts, and marketing, these factors all play into the customer acquisition cost metric or CAC.
In the past, business owners and companies would use broad marketing tactics to try and reach as many people as possible, hoping it would result in sales. Now, with the level of data they have access to, advertisers can create highly specific and targeted ads that are more likely to create sales and increase awareness.
We can also track the entire relationship with customers, from those who might be interested in services and products to those who have become loyal patrons. So, what is considered CAC, how do you calculate it, reduce it and improve it?