How much is a customer worth to your business?
And how much can you afford to pay to acquire a new customer?
These are simple questions, but important ones.
In this post, I’m going to share a simple five-step process you can follow to figure out EXACTLY how much you can afford to spend to profitably acquire a new customer.
This is called your Customer Acquisition Cost, or CAC.
Knowing your CAC will also give you some crucial insights into many other areas of your business, and can help answer questions like, “What’s a good cost per click for my company?”