CAC is one of the most essential financial & business metrics that companies should always pay attention to. It is directly related to the organization’s customers and defines the resources the companies need to attract new customers and continue developing, growing in the future.
In other words, to calculate the Average Customer Acquisition Cost, the businesses need to calculate Marketing costs and divide them by CA amount (customers Acquired).
Technology, even a basic economic system, can go a long way toward helping companies track these numbers and spot changes that may positively or negatively impact their financial health.
All these financial metrics are vital to know for small firms or big corporations, in general, for any size of the company to face all market challenges, survive and thrive in the highly competitive 21st-century market.
This article discussed the Top 10 best financial metrics every business owner should know, but actually, they are more. For instance, it is also essential to define ROI (return on investment) or earnings per share and other meanings. We will have a separate article on other financial and business metrics in the coming future.