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Customer Acquisition

What Is Customer Acquisition?

You have a business and find the right people to encourage them to buy from you. It has a direct impact on business growth and revenue.

Customer Acquisition Funnel Stages

  • Awareness. Here, brand visibility is created.
  • Interest. Prospects are nurtured with valuable content and information.
  • Consideration. Providing solutions and showcasing your offer’s benefits.
  • Conversion. Turning prospects into clients by closing sales.
  • Retention. Keeping clients satisfied and engaged to encourage loyalty.

Customer Acquisition Metrics

Customer acquisition cost formula: (Total Marketing and Sales Expenses) / ( Clients Acquired)


Customer Acquisition Strategies

To improve your CA efforts, consider these strategies:

  • Content Marketing.
  • Search Engine Optimization.
  • SMM.
  • Email Campaigns.
  • Paid Advertising.

Customer Acquisition VS Marketing

The customer Acquisition strategy is a critical aspect of a company’s growth, as it directly impacts revenue generation and long-term profitability. It involves identifying the prospects, attracting them, and ultimately converting them into paying clients.

Marketing, on the other hand, is a broader concept that includes all activities undertaken to promote a business, its products, or its services. While CA is a primary goal of marketing, marketing goes beyond that by also focusing on brand building, customer retention, and engagement.

CLV to CAC Ratio

The Customer Lifetime Value to CAC ratio shows the profitability and sustainability of your efforts. CLV should be at least three times higher than the CAC to ensure long-term business success.

Customer Acquisition FAQ

How to reduce customer acquisition costs?

  • Optimize marketing channels and strategies;
  • Improve website usability and user experience;
  • A/B test different approaches to find the most effective methods;
  • Utilize content marketing to build trust and engage prospects;
  • Leverage referral programs;
  • Optimize the sales funnel for higher conversion rates;
  • Use automation tools to streamline the processes;
  • Invest in remarketing campaigns;
  • Monitor and reduce churn rate;
  • Collaborate with partners and affiliates for cost-effective lead generation;
  • Optimize SEO for organic traffic growth;
    Utilize media platforms for targeted advertising and engagement;
  • Continuously analyze and adjust your marketing budget allocation.

What is a good cost of customer acquisition?

A good CAC depends on your industry, product, or service. While it’s difficult to provide specific numbers for all industries, here are some average benchmarks for a few sectors to give you a rough idea:

Software as a Service (SaaS)

  • Small businesses: $300-$600
  • Medium businesses: $600-$1,200
  • Enterprise: $1,200-$3,000


  • Low Average Order Value (AOV) Products: $10-$30
  • High Average Order Value (AOV) Products: $30-$100

Mobile Apps

  • Gaming: $1-$4
  • Non-gaming: $2-$5

Online Education

  • Self-paced courses: $50-$150
  • Live classes: $100-$400


  • Wireless carriers: $300-$400
  • Cable and broadband providers: $250-$350

What is a good CLV:CAC ratio?

A good CLV:CAC ratio is at least 3:1. This means that for every dollar spent on acquiring a client, they should generate at least three dollars in revenue over their lifetime.

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