CAC Definition

Whether you're in traditional high street shops or diving into the fast-paced world of eCommerce, one goal stays the same: get and keep loyal customers. With so many businesses fighting for attention, finding those loyal customers isn't always easy.

That's where the Customer Acquisition Cost (CAC) can help. CAC is the average cost of acquiring a new customer, from initial contact to them making their first purchase.

We are going through tough economic times.  You may believe that the easiest strategy to get customers flocking back would be to lower your prices.  Alternatively, you could consider raising your prices to bring in some much-needed revenue.  If you take the latter path there’s bound to be trepidation that this could be the final nail in your retail coffin, that your customers will abandon you for those other retailers offering cheaper products.

Getting paid on time is one of the most frustrating issues for businesses. Customers are never  overjoyed to part with their money. But if they are happy with your products and service they are much more likely to pay within the negotiated time frame. 

This week, we have a guest blog post from Patrick Foster.

Patrick is a writer and ecommerce expert from Ecommerce Tips — an industry-leading ecommerce community on a mission to share myriad business and entrepreneurial insights from the sector. 

Confusing prices and pricing strategies could be puzzling your customers - and impacting your profits negatively. 

According to Chris Lema in his article How to Announce Pricing Changes (Without Ruining Everything), it's not the price change itself that you should be worried about but how you present it to your customers.

Companies with high churn typically spend vast amounts on marketing to try to replace their defectors. However, as it’s more cost-effective to win back lost customers than to garner new ones perhaps they should be using strategies aimed at getting “lost” customers to return.  A study completed by Marketing Metrics says you normally have a 20 to 40% chance of winning back an ex-customer – so, how’s it done?

Electrical World, a Northern Ireland based company started from humble beginnings and has quickly risen to be a leading independent electrical appliance retailer of CCTV, heaters, fans, lighting, lamps and wiring accessories.

Introduction

It's pretty obvious that the great British public spend their money in different ways - some people will throw their money around without a care and others save their money like Scrooge. The majority of us come somewhere in the middle. There may well be dozens of different types of buyers depending on how you look at things, but most people whittle them down to just 3.