Question

    Which metric measures the cost incurred to acquire one

    customer?
    A CLV Correct Answer Incorrect Answer
    B CPC Correct Answer Incorrect Answer
    C CTR Correct Answer Incorrect Answer
    D Customer Acquisition Cost (CAC) Correct Answer Incorrect Answer
    E Market share Correct Answer Incorrect Answer

    Solution

    Customer Acquisition Cost (CAC) measures total marketing and sales cost divided by number of customers acquired.  Why Other Options Are Incorrect • A: Long-term customer value. • B: Cost per click only. • C: Click percentage. • E: Industry-level share.  Banking Example: Total campaign spend ÷ number of new savings accounts opened.

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