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What is CAC?

  1. A Customer Acquisition Cost: total sales and marketing spend divided by new customers
  2. B Cost of Actual Conversions
  3. C Customer Attrition Count
  4. D Campaign Activity Cost
Answer

Customer Acquisition Cost: total sales and marketing spend divided by new customers

It must include salaries and tools, not just media spend, or the figure flatters performance and misleads decisions.

All Marketing MCQs

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