CAC: what is it and why is it growing?

Your customer acquisition cost (CAC) is equal to your marketing costs divided by the number of customers you acquire. The number of customers opting out of a service because they are dissatisfied, or churn, is high.

A faulty product, too many emails, or a frustrating experience with customer support are all reasons for leaving. Having lost you as a customer, the company you just left needs to...go out and spend even more on acquisition costs to make up for that loss.



 

According to ProfitWell, which analyzed nearly 1,800 different B2B and B2C subscription businesses, customer acquisition costs are nearly 70% higher for B2B companies and over 60% higher for B2C companies than they were just six years ago.


2 ways to offset rising CAC costs


Customer service: Solve problems as soon as they happen—or even before they happen.

Sales Strategies and Automated Tools, that don’t require paid advertising.

Use your product talent to invest in internal tools like personalized, automated text messaging campaigns, messenger campaigns LeadsBot or periodic customer check-ins to capture unrealized sales constantly.



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