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Why is Customer Acquisition Cost (CAC) like a Belly Button? – 25iq

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Every business owner has customer acquisition cost (CAC). And a belly button. If that business owner does not know their CAC they are essentially the equivalent of a blindfolded poker player. Every…

Every business owner has customer acquisition cost (CAC). And a belly button. If that business owner does not know their CAC they are essentially the equivalent of a blindfolded poker player. Every shareholder is a partial owner of the business in which they own shares. If they want to make intelligent decisions about the value of that partial ownership interest in the business, they must understand CAC. CAC is a key element in the unit economics of a business, which can tell the owner whether the business is healthy. Unit economics are determined by understanding the direct revenues and costs

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