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Analytics

Acquisition Cost

Acquisition cost is the total expense incurred to gain a new customer, including advertising, marketing, and sales costs. It is a critical metric for evaluating the efficiency and sustainability of growth strategies.

Examples

A subscription box company calculates that it spends $45 in ads and promotions on average to acquire each new subscriber.

Best Practices

Track acquisition cost by channel so you can reallocate budget toward the most efficient sources of new customers.

Related Terms

customer acquisition costcustomer lifetime valuereturn on ad spend

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