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Therefore, This Financial Metric In Marketing Considers Advertising Expenses, For Example, Paid During The Time Or Project Analyzed. Cac Is Defined By The Following Formula:customer Acquisition Cost = (Cost Of Sales + Marketing Cost) / New Customers Acquireda Manager Must Compare The Customer Acquisition Cost With Ltv To Ensure The Sustainability Of Their Business Model. If The Investment Is Above The Defined Budget, Or Interferes With The Company's Roi, It Is Necessary To Reduce The Cac, Through More Effective Control Of Advertising Expenses And Greater Focus On Customer Retention And Incremental Sales.

Find Out The Cost Of Lifetime Value Or Ltvevery Marketing Professional Knows advertising data That It Is Less Costly For The Company To Maintain Active And Loyal Customers Than To Acquire New Ones. Ltv Measures Exactly This Company's Loyalty Capacity. Therefore, It Is Defined Using Information Such As Each Customer's Average Ticket, Multiplied By Their Average Annual Purchases And The Time This Customer Has Been Active: Ltv = Average Ticket X Average Purchases Per Customer Per Year X Average Customer Relationship Longevitythis Metric, Therefore, Defines How Much Money, On Average, Customers Spend And How Long They Will Be Able To Do So.

This Way, The Company Can Define A Maximum Budget So As Not To Burden Its Cash Flow With Customer Acquisition, It Can Invest In More Effective Strategies For This Stage Of The Funnel They Are In And Find Opportunities To Further Improve The Retention Of These Consumers. Return On Advertising Spend With Roaso Roas (Return On Advertising Spend) Is A Good Metric For Evaluating The Performance Of Marketing Campaigns.