The difference between digital marketing and web marketing

[shaownhasan]

Specifically, CAC is primarily used when looking at indicators for businesses such as SaaS or the overall business, whereas CPA is often used when talking about a specific measure, such as verifying the effectiveness of an advertisement or page improvement. For more information on CPA (cost per acquisition), please see this article. Also check out this article What is Cost Per Acquisition (CPA)? What is it, how to calculate it, its importance, and how to improve it? How to calculate CAC We will explain how to calculate CAC.


How to calculate CAC CAC = "All costs incurred to acquire belgium telegram data new customers, including sales and marketing expenses" ÷ "Number of new customers acquired" Using the above formula, for example, if your monthly sales expenses are 200,000 yen, your marketing expenses are 300,000 yen, and you are able to acquire two new customers, your CAC will be (200,000 yen + 300,000 yen) ÷ 2 = 250,000 yen. The key point here is that the costs used in the calculation must only include costs related to acquiring new customers.


If other costs, such as follow-up costs for existing customers, are included, the CAC will not be accurate and it will not be an effective indicator. In addition, if your expenses vary greatly from month to month, you will be able to get more useful figures by dividing the calculation into longer periods such as six months or a year rather than just calculating on a monthly basis. Types of CAC CAC can be divided into three categories: Organic CAC Paid CAC Blended CAC "Organic CAC" is the cost of acquiring customers through natural inflow, such as through search inflow or referrals from existing customers.