Digital Marketing

Let’s talk about your CAC

There are several steps that a brand can follow to find its new customer acquisition cost (CAC) goal and different things you will want to think about:

  1. Determine your target customer acquisition rate: The first step is to determine how many new customers you want to acquire over a given period of time. This will depend on your business goals and the size of your target market.
  2. Calculate your current CAC: To find your current CAC, divide the total cost of your customer acquisition efforts (such as marketing and sales expenses) by the number of new customers acquired during the same period. This will give you a baseline to work from.
  3. Determine your budget: Next, consider your overall budget for customer acquisition efforts. This will help you determine how much you can afford to spend on acquiring new customers.
  4. Set a CAC goal: Based on your target customer acquisition rate, budget, and current CAC, you can set a CAC goal that is realistic and achievable.
  5. Monitor and optimize: Once you have set your CAC goal, it’s important to regularly monitor your progress and adjust your strategy as needed to ensure that you are meeting your goal. This may involve optimizing your marketing and sales efforts, identifying new customer acquisition channels, or adjusting your pricing strategy.

It’s important to note that your CAC goal will likely evolve over time as your business grows and your target market changes. It’s a good idea to regularly review and adjust your CAC goal to ensure that it is still aligned with your business goals.