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Customer Acquisition Cost

Definition:

Customer Acquisition Cost is the cost connected with procuring a new client.

Information:

By dividing the whole amount of acquisition charges by the whole amount of new clients, the cost of customer acquisition can be estimated. Nevertheless, various choices are available regarding the composition of expenses of acquisition. An example is refunds and concessions that do not refer to the total expenditure. However, they do affect money (as well as the client, in all probability).

Costs of acquisition differ from industry to industry and from medium to medium. Make an attempt to ascertain if you are juxtaposing apples with apples as an example when data acquisition is at hand. This is a difficult task, as customer acquisition data may be sparse, and the procedure is usually inadequate.

Synonyms:

acquisition cost.

Related Terms:

conversion ratecost-per-action (CPA)cost-per-click (CPC)CPM (Cost per mile)

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