Question

Which two aspects of a company's customers could a high customer acquisition cost (CAC) indicate?

o o o o
The customers are unreliable in terms of purchases Incorrect Correct
The marketing is ineffective Incorrect Correct
The marketing is effective Incorrect Correct
The demographic has shifted Incorrect Correct

Answer 1

- The marketing is ineffective
- The demographic has shifted

Reason: a high CAC usually means you're spending too much to acquire each customer (ineffective marketing or poor targeting) or that your target audience has changed and is harder/more expensive to reach.