Calculating customer acquisition cost (CAC) involves determining total expenses related to acquiring new customers and dividing that by the number of customers acquired during a period.
Gather all relevant sales and marketing expenses, which include advertising, promotions, sales team compensation, and any additional costs that contribute to acquisition.
To calculate CAC, add total costs from sales and marketing and then divide this by the number of new customers acquired during the same time frame.
Using reliable data from CRM systems or sales reports is essential for accurately identifying the number of new customers, ensuring the effectiveness of your CAC calculation.
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