What is customer acquisition cost and why does it matter?
Intercom, Inc.
NOVEMBER 7, 2018
Multiplying clicks times cost per click tells us that we paid $500 for 10 customers with Ad 1, $1000 for 10 customers with Ad 2, and $2000 for 10 customers with Ad 3. For Ad 1 it was $5 per click, for Ad 2 it was $10 per click, and for Ad 3 it was $20 per click. Most businesses typically use a 1-, 3- or 5-year LTV calculation.
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