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CAC or Cost of Acquisition Did you know that you can “buy” your own customers?

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CAC or Cost of Acquisition Did you know that you can “buy” your own customers?

That’s right, this is not a joke, it is a practice that has been done for a long time by many companies. From Idital, we will reveal the true value of this term “CAC” or “customer acquisition cost” and how you can use it for your own benefit. After all, you don’t have to wait for your customers to come in naturally if you have the ability to buy them and start closing sales. Read this post to the end and discover how many successful companies use CAC to achieve better results. What is the CAC? This term is widely used in digital marketing. Basically, it is about the minimum investment required how to call belize from us cell phone to make a potential consumer end up becoming your customer , buy your products or services and generate a good return on investment. You can also make use of this online marketing metric in different areas such as SEO, SEM , emaling and others. What is the importance of the CAC? It is much better to know what is going to happen when doing something, than not to know it. This is precisely where this metric used in digital marketing helps us . This is something very important for the financial well-being of your organization, since with the CAC you will be able to know how much money each of your clients costs you, so once you have had a certain utility through the purchases of each of these , you will know if your company won or lost.

In addition, you will be able to know what are the most effective marketing channels for your advertising campaigns and what more customers you generate. So managing everything that CAC entails will allow you to better manage the budget you spend on marketing, and also get the most out of it. How is the acquisition cost calculated? First of all, we have to know what the average CAC of your company is. With that end in mind, we are going to carry out customer acquisition campaigns and from the marketing media that you plan to use on a recurring basis. Afterwards, we carry out an analysis of the results obtained to find out how much a client costs you. For example, if you invest € 2,000 in Facebook Ads and get 100 clients, that means that your CAC is € 20 on Facebook. And if in the other means that you used to attract clients you placed the same amount of investment, and the results were 15, 25, 18 and 22 euros for each client, we will have to average the total. We would be talking about that in general terms, € 10,000 as an investment budget in marketing campaigns to attract customers through five advertising media, allow you to get 500 clients, and the cost for each one is € 20.

Then, once your customer acquisition campaign has been carried out and one of them makes the purchase of one of your products valued at 100 euros, your profit will not be the total value of the purchase (100 euros), but it will be the value of the purchase minus the amount of money invested in attracting that customer. It would be calculated as follows: 100 euros (purchase value) – 20 euros (customer acquisition cost) = 80 euros (profit). This formula is only used the first time a new customer makes a purchase on your website or E-commerce . All the other times that this client makes a purchase on your site, the profit will be equal to the Taiwan Database amount of said purchase, unless you have had to make some type of investment for it. Can it be used with all sales channels? Yes, you can calculate your CAC with any sales channel you want, whether they are traditional channels such as television, radio or written press, as well as Facebook, Instagram or YouTube, for example. After all, the main objective of the CAC is that you know how effective your marketing strategies are in each of the channels you use.

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