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      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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