How to choose the right channel
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ELEGIR EL CANAL ADECUADO

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We can choose the right CHANNEL of communication to invest in advertising by taking into account what it costs me to obtain a customer in each of them. By comparing the CAC of each communication CHANNEL we can decide with more criteria which one we are more interested in to accelerate our company. If we want to compare the effectiveness of the channels, we only enter the advertising costs incurred in each of them (it is not necessary to enter all the costs, much less distribute the staff costs).

En cada canal invertimos una cantidad de dinero en publicidad, medimos los clientes conseguidos, calculamos el CAC y por comparación podemos decidir en qué canal nos interesa invertir más CAC por canales

It is a very useful metric to compare the effectiveness of each of the channels through which we can attract customers. In this sense, To calculate with some foresight the cost of customer acquisition that we can afford in a campaign, we will have to take into account what the average purchase value of our customers is. In other words, how much they tend to spend on average.

This is because if, for example, we are a decoration shop and our customers spend an average of €30, it doesn't make sense for our customer acquisition cost to be €20. On the other hand, it would make sense to invest that much if we sell luxury cruises on the Nile and the average purchase value is €3,500.

Therefore, the CAC, or customer acquisition cost, is a effective metric to assess how much we can spend on customer acquisition. Google refers to CPA as "the cost you are willing to pay to make a conversion", but not to acquire a new customer. CAC, on the other hand, is about acquiring new customers.

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