Understanding CAC in E-commerce

Calculating CAC accurately helps e-commerce businesses understand the return on investment of their marketing efforts and strategise for better customer acquisition.

Benefits of Monitoring CAC for E-commerce

• Budget Allocation: Understanding CAC helps in allocating marketing budgets efficiently.
• ROI Analysis: Businesses can analyse the ROI of different marketing channels by comparing the CAC to the customer lifetime value (CLV).
• Strategic Planning: It aids in strategic planning for customer acquisition and growth.