CAC (Customer Acquisition Cost)

Understanding CAC in E-commerce

Calculating CAC accurately helps e-commerce businesses understand the return on investment of their marketing efforts and strategise for better customer acquisition.

Benefits of Monitoring CAC for E-commerce

  • Budget Allocation: Understanding CAC helps in allocating marketing budgets efficiently.
  • ROI Analysis: Businesses can analyse the ROI of different marketing channels by comparing the CAC to the customer lifetime value (CLV).
  • Strategic Planning: It aids in strategic planning for customer acquisition and growth.

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