Customer Acquisition Cost: What is it and how to optimize
Would you like to optimize the marketing and sales budgets of your business or startup? If so, you need to know your Customer Acquisition Cost (CAC).
Every entrepreneur or business owner who wants to maximize the results of their marketing efforts should familiarize themselves with this metric.
You must also learn to calculate and constantly optimize it, since there are many external factors that could affect it.
What is Customer Acquisition Cost?
Right now, advertisers are incurring higher costs when running ads on social platforms, such as Facebook and Instagram.
But the truth is that this upward trend has been strongly evident in recen latvia consumer mobile number list t years, especially in the United States.
In 2018, the Cost Per Thousand (CPM) price on Facebook experienced a 122% increase, according to data from AdStage .
This metric measures the cost that an advertiser must pay for every thousand views that an ad receives on that platform.
At this time, it is imperative to take care of every last cent you invest in your advertising campaigns to position your messages, promote your new products or services, attract quality traffic or boost your conversions.
According to a HubSpot post , CAC is equal to the total sales and marketing costs you must incur to acquire new customers over a given period.
Let’s be honest: if your business doesn’t constantly attract new clients. Yt will be very difficult for it to grow or break through its potential turnover ceilings.
The more effective your prospecting and lead conversion strategies are. The more likely you are 5 ways to make popups look good on mobile devices (for your responsive website) to optimize your CAC in the short, medium and long term.
Now, what role does this KPI play in your company? It doesn’t matter if you’re just starting your operations or if you’ve been. The industry for years: you still need to understand this metric with certainty.
A report by Simplicity on the State of Social Commerce includes a fact tha. Thas se Custome usa phone list r Acquisitiont off alarm bells for marketers and media buyers: brands are losing $29 every time they acquire a new customer through ads.
The key is not to stop investing in advertising. But to fine-tune campaigns to ensure that marketing budgets yield the expected results.
Let’s not be confused: ads on Facebook and Instagram still work.
But we still need to become advertising optimization ninjas so that your CAC doesn’t deflate your accounts overnight.
In this video you will learn some strategies that could help you achieve. Your desired conversions after investing in digital advertising, (especially if you manage an e-commerce):