We use cookies
This site uses cookies from cmlabs to deliver and enhance the quality of its services and to analyze traffic..
We use cookies
This site uses cookies from cmlabs to deliver and enhance the quality of its services and to analyze traffic..
Last updated: Aug 25, 2023
CAC or customer acquisition cost is the cost required to convince potential customers to buy a product or service. More specifically, CAC is the total cost of sales and marketing required to acquire new customers within a certain period of time.
The types of costs that you need to include in your CAC are advertising costs on various platforms, employee salaries, production costs, technical costs, and other costs needed to attract new customers.
CAC is a metric that companies and web-based advertisers use to determine their profit by comparing sales and marketing costs to the number of customers they have successfully acquired.
The formula for calculating CAC is as follows:
Customer Acquisition Cost = (Sales Cost + Marketing Cost) / Number of New Customers Acquired
To calculate customer acquisition cost is to add up all the costs incurred to get new customers and then divide by the number of customers that were successfully acquired in the period of use of these costs.
For example, let’s say you own a software company that spends IDR 15,000,000.00 on a marketing campaign. After that ad campaign, you managed to get 400 new customers. In addition, you need an additional fee of IDR 20,000,000.00 for the cost of production and technical repair of the software for the new customer.
Based on the formula above, here is how to calculate it:
CAC = (IDR 12,000,000.00 + IDR 20,000,000.00) / 400
= IDR 32,000,000.00 / 400
= IDR 80,000.00
From these calculations, it is found that your software company needs IDR 80,000.00 to get one new customer.
There are several ways to optimize customer acquisition costs. Here are some strategies you can apply:
Steps that you can take to optimize conversions are to improve the user experience on the website, such as speeding up loading times, providing a mobile-friendly website, and making purchase features that can be easily accessed by potential customers.
You can increase user value by providing what customers need. You can try receiving feedback from customers and providing appropriate responses such as product improvements, feature enhancements, or launching other new products.
Customer satisfaction can increase user retention for your product or service. That way, you can reduce the CAC needed to attract every single customer.
To bring in more new customers, you need to simplify business processes. Several companies have used CRM-based applications to increase sales leads, increase conversions, and retain existing customers.
For example, providing a newsletter, using a cloud-based sales system, or other systems that can increase customer loyalty.
Customer Acquisition Fee
WDYT, you like my article?
Tell us your SEO needs, our marketing team will help you find the best solution
As an alternative, you can schedule a conference call with our team
Schedule a Meeting?Hey there! Exciting news to share – cmlabs and Sequence Stats have joined forces in an official partnership to bring you top-notch SEO services with an extra dose of quality for Indonesia local market and overseas. 🚀🌟
CheckYour Words, Our Expert Touch! ✎ Check our new services, cmlabs Expert Writing
Checkcmlabs Blog Competition 2023 is open :)
CheckThere is currently no notification...
Tools for SEO Specialist, Writers & Web Developers
Exclusively for cmlabs Member
Unlimited crawl on SEO Tools
Unlimited crawl on SEO Tools
Full access to SEO guideline and terms
Learn more about SEO at cmlabs resources
cmlabs is strive to help enterprises to step up their SEO activities. We called it end-to-end SEO through the product, tools and services (consist of SEO Consultant, SEO Content Writing, and Media Buying). Aside of that, cmlabs still have SEO tools that is designed for webmaster and writer to fulfill their needs. Here are several free access SEO Tools for you!
Level Up Your SEO
Jakarta, Indonesia (HQ)
cmlabs Jakarta HQ Jl. Pluit Kencana Raya No.63, Pluit, Penjaringan, Jakarta Utara, DKI Jakarta, 14450, Indonesia
(+62) 21-666-04470cmlabs Jakarta Office 2 Jl. Tanah Abang I No.11, Petojo Selatan, Gambir, Jakarta Pusat, DKI Jakarta 10160, Indonesia
cmlabs Malang Jl. Seruni No.9, Lowokwaru, Kota Malang, Jawa Timur, 65141, Indonesia
(+62) 341-475-665These strategic alliances allow us to offer our clients a wider range of SEO innovative solutions and exceptional service.
Psst! Hey there, SEO Stats and Tools SEO company! If you've ever planned of conquering the Indonesian market, you've come to the right place! Let's turn those plan into reality, shall we?