Brady's Sports spent $10,000 to increase online sales for their new line of athletic wear. Brady's acquired 500 new customers as a result of this strategy. What was Brady's customer acquisition cost?

Question

Responses

$20 per customer
$20 per customer

$200 per customer
$200 per customer

$2 per customer
$2 per customer

$22 per customer

Answer 1

To calculate the customer acquisition cost (CAC), you divide the total cost of acquiring new customers by the number of new customers acquired.

In this case:

• Total cost = $10,000
• Number of new customers = 500

CAC = Total Cost / Number of New Customers CAC = $10,000 / 500 CAC = $20 per customer

Therefore, Brady's customer acquisition cost is $20 per customer.