- Protiendas
- 2nd June, 2025
How to Calculate Customer Acquisition Cost in Your Online Store (CAC)
Introduction
The Customer Acquisition Cost (CAC) is a key metric that allows you to evaluate the profitability of your marketing campaigns. In this article, we will explore how to calculate CAC in your online store.
What is CAC?
CAC represents the total resources you invest to acquire a new customer. This cost includes marketing, advertising, and sales expenses. A low CAC may indicate that your marketing strategy is effective.
Why is it important to calculate CAC?
Calculating CAC is vital for understanding your business's profitability. If CAC exceeds the Customer Lifetime Value (CLV), you may be spending too much on marketing.
Steps to Calculate CAC
1. **Determine your marketing costs**: Add up all marketing expenses over a specific period.
2. **Calculate the number of customers acquired**: Count how many new customers you gained during the same period.
3. **Divide costs by new customers**: Use the formula: CAC = Marketing Costs / Customers Acquired.
Practical Example
Suppose you spent €1,000 on marketing and acquired 50 new customers. The CAC would be: CAC = €1,000 / 50 = €20. This means each customer cost you €20.
Conclusions
Calculating CAC is fundamental to optimizing your online store. Maintaining a reasonable CAC will allow you to invest more in marketing and grow your business.