Illustration of the customer acquisition cycle - attract, convert, retain. Customer acquisition cost (CAC) is an important business metric.Mary Meeker, sometimes referred to as “Queen of the Net”, started publishing an annual Internet trends report in 1995 while at Morgan Stanley. Today, she is a partner at venture capital firm Kleiner Perkins Caufield & Byers.

The just-released 2019 Internet Trends report has a number of interesting takeaways. Among the insights is a graph showing that customer acquisition cost is rising in highly competitive sectors and an assertion that this metric cannot exceed lifetime value for very long.

Digital marketers have historically tracked measured campaigns based on cost per lead (CPL) or return on ad spend (ROAS). But Meeker’s point is well-taken – as a market matures, it is important to understand the true cost of acquiring a customer compared to the net profit (not revenue) that your company can expect during its entire relationship with that customer. Using this metric, your company can identify and pursue customer segments that are most valuable.

At periscopeUP, we focus on driving positive returns for our customer’s digital marketing investment. Call us at 443.475.0787 or contact us online to re-evaluate your digital marketing strategy and ensure you are tracking the most appropriate KPIs for your business.