Overview
Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer. It includes marketing expenses, sales team costs, and any other costs related to gaining new clients. Understanding CAC helps startups determine if their business model is sustainable and if they can profit from each customer over time. By managing CAC effectively, entrepreneurs can improve their financial health and grow their businesses.
📚 Key Learning Objectives
- ✓ Define Customer Acquisition Cost (CAC).
- ✓ Calculate CAC using provided data.
- ✓ Analyze the impact of CAC on profitability.
- ✓ Compare CAC with Customer Lifetime Value (CLV).
- ✓ Identify strategies to reduce CAC.
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