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The Number That Will Scale Your Business More Than Anything Else | Ep 739
The Game w/ Alex Hormozi
Efficiency and Optimization in Customer Acquisition Cost
Customer Acquisition Cost (CAC) is a crucial ratio that can be improved by either decreasing CAC itself or increasing the Lifetime Value (LTV) of customers. To decrease CAC, focus on efficiency in advertising to reach more people effectively with each dollar spent. CAC is a funnel where each step influences the final cost; hence, optimizing each stage can reduce CAC. To lower CAC, aim for cheaper eyeballs or enhance post-click conversion rates. The key to CAC success lies in nailing the offer to appeal broadly to the target market.
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