Definition: Cost of Acquisition refers to the total expenses incurred by a company or individual in acquiring a new client, customer, or asset. These costs can include marketing and advertising expenses, incentives, distribution costs, and sales team salary and expenses.
The phrase “coffee is for closers” comes from a movie where a sales director is getting frustrated with his company having underperforming sales reps and thus too high of a cost of acquisition.
The cost of acquisition is a crucial metric in evaluating the efficiency of a company’s marketing strategies and the value of its customer base.
With PPC intelligence, a company can tell whether or not its Google Ads are purchasing visibility on phrases with intent. With a good CRM, the actual purchases can be attributed to specific Google campaigns as well.
Use It In a Sentence: After analyzing the quarterly financials, the marketing team realized that by optimizing their ad campaigns, they significantly reduced the cost of acquisition, thereby increasing the company’s overall profitability.
Looking to optimize your customer acquisition strategies? Our sales funnel course provide strategies to effectively manage and reduce Customer Acquisition Costs (CAC).
Related Terms: CRM Hygiene Definition, NRR Definition, ROI Definition, KPI Definition, CRM Definition, ABM Definition, Fintech Definition, OTE Defintion, ICP Meaning Sales, Spray and Pray, Throwing Spaghetti at the Wall, Low Hanging Fruit Meaning, Top of Funnel
Useful Posts: 10 Tips to Tighten Up Your Software Sales Pitch | What Is a Funnel Builder?
