Customer Acquisition Cost (CAC) is the total cost of acquiring a new customer, including marketing, advertising, and sales expenses, divided by the number of new customers acquired.

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Why is Customer Acquisition Cost (CAC) important?

CAC is important because it helps businesses measure the efficiency of their marketing efforts and optimize their strategies to minimize costs and maximize customer acquisition.

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An easy way to understand Customer Acquisition Cost (CAC)

Think of it as the total amount of money a company spends to gain a new customer, including advertising, marketing, and sales expenses.

How to Calculate Customer Acquisition Cost (CAC)

To calculate Customer Acquisition Cost (CAC), divide the total cost of sales and marketing efforts over a given period by the number of new customers acquired during that same period.

For example, if a company spent $10,000 on marketing and sales in a month and gained 100 new customers, the CAC would be $10,000 / 100 = $100 per customer.

At Kosme Aesthetics we assess the Customer Acquisition Cost (CAC) by calculating the total marketing and advertising expenses divided by the number of new clients acquired over a specific period.

For instance, if our brand spends $1,000 on a social media campaign that attracts 50 new clients, then the Customer Acquisition Cost would be $20 per client.

By optimizing marketing strategies to lower the Customer Acquisition Cost our clinic have improve profitability, allocating resources more efficiently to attract new clients at a lower cost.