Optimizing Customer Acquisition Cost (CAC): Get More for Less
What is CAC? Customer Acquisition Cost (CAC) is the total expense involved in acquiring a new customer, including marketing and sales costs.
Why It Matters: Lowering your CAC means you can spend less while bringing in more customers, directly impacting profitability.
3 Quick Tips to Lower CAC:
1 Improve lead targeting: Focus on high-quality leads that are more likely to convert.
2 Optimize your sales funnel: Streamline the journey from prospect to customer to reduce inefficiencies.
3 Leverage content marketing: Organic content can bring in customers at a lower cost than paid advertising.
Example: Dropbox used referral marketing to lower CAC significantly. Their simple “invite a friend” feature brought in thousands of new users with minimal marketing costs.