The Challenges of CAC
Marketers use a range of different metrics to assess the efficacy of their marketing and media spend. One crucial metric is
While extremely important, calculating CAC can be quite a challenge. Even for many experienced marketers, the ability to track new customers against existing, long-time customers accurately and effectively is still a significant undertaking.
So how can marketers deliver on this important KPI? The solution is in centralizing their customer data.
Get a single view of your customers
Today’s customers regularly switch between multiple devices and channels, creating a potential challenge for marketers to unify data from disparate sources. For marketers to truly analyze customer acquisition, they first need to ensure that they are getting a single, consolidated view of each customer’s unique path to conversion. This means leveraging identity resolution (IDR) tools to recognize each customer as the same individual across sessions and devices. Only when marketers have a unified view of their customers on an individual level can they truly understand which interactions are effective at driving conversion.
Understand the customer journey
Every customer behaves differently. Some prefer to shop online versus in stores, or on their tablet instead of on their phone. Some long-time customers make regular purchases, while others are habitual cart abandoners. Some customers are decisive and complete purchases quickly, while others prefer to research other brands and compare prices. Marketers need to be able to recognize these differences to effectively deliver initiatives that speak to each customer’s unique relationship with the brand.
Invest in the right technology
Many marketers are hard-pressed to find the resources to deliver the right data and the insights necessary for a successful omnichannel strategy. Marketers need to invest in a platform that enables omnichannel attribution and delivers insights into which impressions on which engagement channels lead to each conversion.
The fact is, CAC is a fairly straightforward metric, but the process of actually acquiring a new customer is often complex and convoluted. Marketers need to prioritize working with technology that unifies their data and identifies the exact impression that drives a customer to conversion; this granular level of understanding enables marketers to build a more effective, efficient strategy.