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CAC or RoAS how to measure your marketing performance?

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CAC or RoAS how to measure your marketing performance?

Measuring marketing performance often hinges on two key metrics: Customer Acquisition Cost (CAC) and Return on Ad Spend (RoAS). CAC calculates the average expense to gain a new customer, while RoAS gauges revenue generated for every euro spent on advertising. Depending on the business model, marketers may prefer one metric over the other. For businesses selling diverse products, CAC provides a broader view of profitability, while RoAS suits simpler models with fewer products. To enhance CAC, companies can improve conversion rates and update CRM data. For RoAS, focusing on targeted campaigns, analyzing customer behavior, and optimizing ad performance are crucial. Both metrics are essential for effective marketing strategy and performance evaluation.

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