Improve customer acquisition using data

To measure CAC, divide the amount spent on an acquisition channel, by the number of new customers. The result is how much it costs a brand to acquire a new customer using this marketing channel. Although often it is more complex than this because channels may nudge prospects closer to a state of buying but still miss that last touch channel attribution.

In its simplicity, £5,000 spent on a direct mail campaign that acquired 500 new customers, going by last touch channel attribution would have a CAC of £10.

There are many ways marketers can improve the CAC of a customer acquisition campaign. It comes down to using data, research, and insights to adjust and optimise your acquisition strategy. Improving the CAC also requires an understanding of the role that different marketing channels play in the customer journey and how marketing channels can complement each other. Often an integrated approach is best, meaning brands should look to use both online and offline marketing channels.

There are valuable insights that can be found from analysing the performance of previous acquisition campaigns. Brands can also analyse the CAC of specific channels and how they perform with certain individuals or demographics. These insights can be used to tailor future campaigns to make them more efficient and lower the total customer acquisition cost. 

Geodemographic segmentation is a great way to identify where your potential customers are. It combines geographic and demographic data – like age, gender, education, and income – to help you understand the makeup of different areas.

This lets you find lookalike audiences in similar neighbourhoods or households and target them more effectively with localised marketing campaigns.

Customer profiling helps you understand who your most valuable customers are – and how to find more people like them. You can model customer lifetime value and identify prospects who are most likely to convert.

These insights can be used to fine-tune your marketing strategy and allocate budget more efficiently. Campaigns built around profiling can use formats like direct mail, partially addressed mail (PAM), or door drops to target high-potential audiences.

Regional analysis is still a key part of any acquisition strategy – especially for brands with physical stores or local services. By analysing travel time, local catchments and brand awareness by region, you can make better decisions about where to focus national or regional marketing activity.

This can be particularly powerful when paired with channels like direct mail, where location targeting drives both reach and relevance.