Be in the Know
- Pepsi opens virtual restaurant Pep’s Place for food and beverage delivery
- Twitter to let users sell tickets to live audio chats on Spaces
- Why Email Marketing Is Crucial For Businesses
- CTV is still among the fastest-growing channels in digital advertising
How to Use & Reduce Customer Acquisition Cost (CAC)
You just can’t put a price on some things. Grandma’s pancakes: to die for. Running into Bill Nye at a cafe and learning about the chemical reactions of roasting coffee beans: a treasured memory and newfound knowledge. The new shirt you bought after you spilled coffee all over yourself because you were so flustered by your Bill Nye encounter: $25. Totally worth it. Science rules, y’all!
While you pay a price to maintain and improve your business, it’s easy to forget that you pay for your customers as well. Your Customer Acquisition Cost (CAC) is simply how much money it costs to gain a customer. Of course, the goal is to do more than break even on this cost. Follow along with Ahrefs as they cover how to use and reduce Customer Acquisition Cost.
How to use CAC
- Use CAC in relation to LTV (Customer Lifetime Value). If you’re paying more to gain a customer than your customer pays you, then you’ll have a bit of trouble sustaining your business. Ideally, you’ll want your LTV to be at least three times greater than your CAC to keep a profit. Of course, there are other costs to account for.
- Use CAC in isolation for performance ad channels. CAC is difficult to measure across all channels. Google likes to attribute conversions to ads that directly drive those conversions, so use CAC for those kinds of performance channels.
How to reduce your CAC
- With SEO and content marketing. We’re preaching to the choir here, but mixing paid efforts with organic efforts will yield better results, and it can help reduce your CAC. An effective SEO strategy will cover all the marketing funnel stages, while PPC is best used for someone ready to buy. If you’re with someone throughout their journey, they won’t need as big a push from PPC to cross the finish line.
Learn more CAC reduction tips as well as some of the problems with CAC.
Q for You
Livestorm
There are so many types of content we can use to convey our messages. Some are more effective than others, but a webinar is perhaps the holy grail of content types. Webinar attendees = leads, and you get a live captive audience listening to what you have to say. Use Livestorm to keep your webinars running smoothly.
Whether you’re hosting a live event or a pre-recorded webinar, Livestorm gives you all the tools you need. From sending reminders to automating sections of your webinar, this tool keeps on top of things so you don’t have to worry about forgetting any crucial elements. Use Livestorm to plan your events, go live, and review analytics to measure the success of your webinar compared to your goals.
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Watch
Fans Make The Movies
Imitation is the highest form of flattery. People like to copy the things they like. It’s why we grow up to be the people we are. We pick and choose what we like, and we embody it.
Netflix shows off some flattering UGC in this ad. The Ikorodu Bois from Lagos, Nigeria are aspiring filmmakers using limited equipment on shoestring budgets. No need for CGI and grand studio lots – a little bit of inspiration goes a long way.
“Clearly, the thing that’s transforming is not the technology — it’s the technology that is transforming you.”
Jeanne W. Ross
