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Customer Acquisition Cost (CAC)

Customer Acquisition Cost (CAC)

What is Customer Acquisition Cost (CAC)?

Customer Acquisition Cost (CAC) represents the $ amount that it costs you, on average, to acquire a new customer. This is a critical metric for your ecommerce business as you always want to drive down CAC compared to the lifetime value (LTV) of your customers. In fact, one of our most important analyses in Peel is our LTV:CAC ratio. This directly compares how much value a customer is bringing to your store over time, compared to the amount it takes to acquire them.

How to Calculate Customer Acquisition Cost

To calculate your Customer Acquisition Cost (CAC) simply divide your sum of your marketing spend for a given period by the total number of customers acquired in that same period of time. Expressed as a formula: CAC = Total Marketing Spend / Customers Acquired. Peel can automate this process with the information that you connect from your marketing channels. Our automated analysis pulls your total marketing spend and automatically calculates your CAC based on the amount of those customers who have converted on your site.

More Acquisition Explanations

Cost Per Acquisition (CPA)
Customers Signup
Email Capture
LTV to CAC ratio

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Peel’s reports are magic. They unlocked answers to burning analytical questions and revealed insights we couldn’t easily find elsewhere. What sets the technology apart is its ability to go deeper and turn data into actionable insights through hyper-specific customer segmentation. Our team is hooked.

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1.
Daily Insights Report
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Your Daily Data Digest. Quickly view key metrics and learn about new trends with automated daily reports delivered directly to your inbox or Slack.
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2.
Custom Dashboards & Slices
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Skip to the Good Stuff. Customizable dashboards give you the power to review the analytics that matter most to your business, in order of priority, all in one place.
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3.
Cohort Analysis
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Understand your customers’ behavior. In-depth cohort analyses help you visualize and gain insight into your customers’ engagement with your brand over time.
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4.
Audiences & Actions
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Build Better Relationships with Your Customers. Audiences is a new and powerful tool that helps you learn exactly who your customers are so that you can hyper-target your marketing and retention efforts and boost your ROI.
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5.
In-depth Segmentation
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Get Specific with Unparalleled Simplicity on Segmentation. Invest more in high-value customers, discover new potential markets, assess the impact of specific campaigns, and reveal more focused insights using Peel’s intuitive segmentation options across any of our 100+ metrics.
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6.
Performance Marketing
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See how your Performance Marketing Performs. Centralize the results of your paid marketing efforts, highlight trends, adjust strategy, and use Peel’s Signal Loss feature to assess the impact of iOS14.5 on your brand.
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7.
Subscription Analytics
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Track Product Performance and Reduce Churn. Peel’s powerful cohorts and segments provide insights that help you grow and retain your subscribers through seamless integration with partners like ReCharge, Bold, and Smartrr.
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8.
Products Analytics
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Understand what customers buy and when! Identify popular products and combos to help you find upsell and repurchase opportunities and fine tune your business processes using product analytics.
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9.
Attribution
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Know when to change the channel. Attribution analysis identifies the channels that you can trust to drive growth and add to your bottom line.
Learn more
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9.
Goals Tracking
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Set monthly or quarterly goals to monitor how you're pacing on each individual metric. By having Peel report and track your pace towards your goal, you are able to align and motivate your team to succeed.
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Daily Insights report in the Peel Insights analytics app for Shopify brands
It’s your data, we’re just delivering it! Get daily updates via Slack or email.
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Create unlimited custom dashboards with the metrics and reports that mean the most to your crew.
Cohorts in the Peel Insights analytics app for Shopify brands
See how different customer acquisition groups bring value to your brand over time.
Audiences in the Peel Insights analytics app for Shopify brands
Take your targeted retention efforts up a notch with Audiences. Filter to find your exact audience list and engage them with content driven by detailed data insights.
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More segmentation options means more details for unlocking customer buying behavior.. Find out what makes your customers tick by understanding what they buy, how they buy it, and where the opportunities are for growth.
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Get a clear view of your marketing performance with data pulled right from the source.
Active subscriptions dashboard in the Peel Insights analytics app for Shopify brands
Nothing boosts loyalty and retention like a great subscription strategy. Level up your subscription offerings with cohort analysis and metrics designed to give you the clearest view of your subscription performance.
Customer purchasing journey dashboard in the Peel Insights analytics app for Shopify brands
Discover how many customers are purchasing product A and then going on to purchase product B (and more) with Product Analytics.
Goals in the Peel Insights analytics app for Shopify brands
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Goals in the Peel Insights analytics app for Shopify brands
Eliminate the guesswork and set clear goals for your brand. Peel will automatically update you on the progress toward those goals to keep your team up and running for the gold!

2. Custom Dashboards & Slices

Analytics can’t be “one size fits all.” That’s why you have the power to completely customize your dashboards with the most relevant metrics and reporting that are tailored to your needs.

3. Cohort Analysis

Get closer to your customer behavior with access to your cohort analytics. This groups customers based on the month you acquired them and shows you how those groups add value to your brand over time.

4. Audiences & Actions

Build Better Relationships with Your Customers
Audiences is a new and powerful tool that helps you learn exactly who your customers are so that you can hyper-target your marketing and retention efforts and boost your ROI.

5. In-depth Segmentation

We get it. Customer data can be overwhelming. Peel makes it easy by allowing you to look at both high level AND the nitty gritty details with 100+ metrics to find the exact insights you need for action.

6. Performance Marketing

Your marketing data shouldn’t live in a silo, with each separate channel and platform. Peel empowers you to get the full picture on your marketing performance by allowing you to connect your marketing platforms. Get accurate data, pulled directly from the source to drive improvements across your channels and campaigns.

7. Subscription Analytics

Track product performance and reduce churn & measure the power of your subscriptions. Peel’s powerful cohorts and segments provide insights that help you grow and retain your subscribers through seamless integration with partners like Recharge, Bold, Awtomic, Rodeo, Skio and Smartrr.

8. Products Analytics

Zoom in on your customer purchasing journey. Find out what your customers are buying each time they come back. This’ll help you refine your marketing strategy, push better product recommendations, and even discover new bundling and upselling opportunities.

9. Attribution

Know when to change the channel
Attribution analysis identifies the channels that you can trust to drive growth and add to your bottom line.
Learn more

9. Goals Tracking

Set your monthly or quarterly KPIs to track your goals. Use this as the driving force to motivate your team with defined benchmarks and consistent tracking. Mountains are best climbed in segments – plan accordingly!
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