Why is CAC important?
Posted: Sun Feb 02, 2025 4:15 am
How much a company invests to acquire a customer is the basic data that we can extract from the CAC. But this metric can reveal many other aspects that help in making strategic decisions.
From the analysis we explained above, you can see that your CAC is not satisfactory. This data shows that the health of the business is not going very well...
So, you need to take the actions to reduce the costs involved in acquiring new customers and, consequently, improve the company's performance.
These CAC improvement actions can target two complementary perspectives: investment optimization and new customer generation. In the next topic, you will see what decisions this metric helps you make.
In the case of startups, the CAC also helps to understand the viability and profitability of a business, not only for entrepreneurs, but also for investors. Having a favorable Customer Acquisition Cost helps to strengthen the company in a negotiation.
How to make marketing decisions based on this metric?
The diagnosis of Customer Acquisition Cost is based on the comparison pakistan phone data with the average ticket or LTV and with the market, as we have already explained. Therefore, Marketing decisions based on this metric can go in two directions:
If the CAC is LOWER than the average ticket, the LTV or the market average
If the value that the customer leaves with your company (average ticket or LTV) is higher than your CAC, then rest assured, you are making a profit .
If the market average is below the value you get, this also means that your business is healthy, with good performance.
But it's worth it: if the difference is too big in relation to the average ticket, the LTV or the market average, evaluate whether you are not failing to invest in stocks that can bring even greater returns.
There may be a huge growth potential that you are wasting, just to avoid more expenses. Investing wisely, in marketing and sales actions with a safe and scalable return, can help your company grow even more.
From the analysis we explained above, you can see that your CAC is not satisfactory. This data shows that the health of the business is not going very well...
So, you need to take the actions to reduce the costs involved in acquiring new customers and, consequently, improve the company's performance.
These CAC improvement actions can target two complementary perspectives: investment optimization and new customer generation. In the next topic, you will see what decisions this metric helps you make.
In the case of startups, the CAC also helps to understand the viability and profitability of a business, not only for entrepreneurs, but also for investors. Having a favorable Customer Acquisition Cost helps to strengthen the company in a negotiation.
How to make marketing decisions based on this metric?
The diagnosis of Customer Acquisition Cost is based on the comparison pakistan phone data with the average ticket or LTV and with the market, as we have already explained. Therefore, Marketing decisions based on this metric can go in two directions:
If the CAC is LOWER than the average ticket, the LTV or the market average
If the value that the customer leaves with your company (average ticket or LTV) is higher than your CAC, then rest assured, you are making a profit .
If the market average is below the value you get, this also means that your business is healthy, with good performance.
But it's worth it: if the difference is too big in relation to the average ticket, the LTV or the market average, evaluate whether you are not failing to invest in stocks that can bring even greater returns.
There may be a huge growth potential that you are wasting, just to avoid more expenses. Investing wisely, in marketing and sales actions with a safe and scalable return, can help your company grow even more.