Customer Acquisition Cost (CAC)
Average cost incurred to acquire a new customer
CAC = Total Marketing & Sales Expenses ÷ Number of New Customers Acquired
Customer Acquisition Cost (CAC) represents the total marketing and sales expenses required to acquire a new customer. It is critical for assessing the efficiency of customer acquisition strategies.
Lowering CAC while maintaining or increasing customer quality leads to better profitability. Understanding CAC helps in budgeting and optimizing marketing channels.
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Gross Merchandise Volume (GMV)
Total value of all goods sold on the marketplace over a specific time period
Number of Active Sellers
Total number of sellers who have listed or sold items in a specific period
Number of Active Buyers
Total number of buyers who have made purchases in a specific period
Average Order Value (AOV)
The average monetary value of each order placed on the marketplace
Take Rate
Percentage of the transaction value that the marketplace retains as revenue