Customer Acquisition Cost (CAC) plays a significant role in pricing strategy. It is the cost associated with convincing a potential customer to buy a product/service. This cost is incurred by the organization while convincing a potential lead to become a customer. It includes product cost and the cost involved in research, marketing, and accessibility costs. In pricing strategy, it's important to cover the CAC and still have a margin for profit. Therefore, understanding CAC helps in determining the price of a product/service.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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