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Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC) is one of the most critical KPIs in e-commerce. It measures the total cost of acquiring a new customer. To track your CAC, you need to know your marketing spend and the number of new customers who have placed an order. CAC is not cost per order since that includes returning customers as well. Understanding and optimizing your CAC is crucial for driving profitable growth in your e-commerce business.

Your profitability on new customers' first orders, in combination with a predicted lifetime value, will be the most important input variable in defining your maximum CAC.

All this is, of course, easy to monitor and analyze in real-time in the Dema platform.

Learn more about e-commerce

If you want to learn more about best practices for profitable and sustainable growth in e-commerce, head over to our blog.

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