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Customer acquisition cost (CAC) is the cost of winning a customer to purchase a product or service. As an important unit economic, customer acquisition costs are often related to customer lifetime value (CLV or LTV). [1] With CAC, any company can gauge how much they’re spending on acquiring each customer.
The Economic Value to the Customer is one of the many pricing architectures a business can use as a pricing strategy. It is key for organizations to invest time and resources to determine the optimal price for a product or service to maximize revenues .
The attach rate concept is widely used as a means of reporting desirable sales associations/outcomes in the gaming industry, though it is common in many technology-related marketing discussions. For instance, in an example related to computer or game console software, a situation may occur wherein: [citation needed]
Cost per action (CPA), also sometimes misconstrued in marketing environments as cost per acquisition, is an online advertising measurement and pricing model referring to a specified action, for example, a sale, click, or form submit (e.g., contact request, newsletter sign up, registration, etc.).
The unit of account in economics suffers from the pitfall of not being stable in real value over time because money is generally not perfectly stable in real value during inflation and deflation. Inflation destroys the assumption that the real value of the unit of account is stable which is the basis of classic accountancy. In such ...
Software as a service (SaaS / s æ s / [1]) is a cloud computing service model where the provider offers use of application software to a client and manages all needed physical and software resources. [2] Unlike other software delivery models, it separates "the possession and ownership of software from its use". [3]
For example, social return on investment (SROI) is a principles-based method for measuring extra-financial value (i.e., environmental and social value not currently reflected in conventional financial accounts) relative to resources invested.
The distinction between real prices and ideal prices is a distinction between actual prices paid for products, services, assets and labour (the net amount of money that actually changes hands), and computed prices which are not actually charged or paid in market trade, although they may facilitate trade. [1]