Customer Acquisition Cost (CAC) Quiz

A small coffee shop spent $3,000 on social media ads and $2,000 on local sales promotions. They gained 250 new customers this quarter. What is their CAC?

• $20

• $25

• $30

• $35

An online clothing boutique spent $15,000 on influencer partnerships and $10,000 on a sales team. They acquired 1,000 new customers. Find the CAC.

• $15

• $20

• $25

• $30

A software company spent $50,000 on marketing and $30,000 on their sales staff salaries. They gained 2,000 new users. Calculate the CAC.

• $40

• $50

• $60

• $70

A local bakery spent $600 on marketing campaigns and $400 on in-store promotions. They gained 50 new customers. What is the CAC?

• $10

• $15

• $20

• $25

A landscaping business began the year with 250 clients and ended with 290 clients, after gaining 80 new ones. Determine the CRC.

• 210

• 250

• 290

• 80

What does CRC stand for in the context of customer retention?

• Customer Retention Cost

• Customer Retention Calculation

• Customer Retention Count

• Customer Retention Chart

If a business starts with 1,000 customers and ends with 1,200 customers after gaining 300 new ones, what is the CRC?

• 900

• 1,000

• 1,200

• 300

What does the formula for Customer Acquisition Cost (CAC) calculate?

• The total revenue generated by a company

• The cost of acquiring a new customer

• The percentage of customers retained over a period

• The total marketing expense of a company

What is the correct formula for calculating Customer Retention Rate (CRC)?

• CRC = (# of Customers at End of Period × # of New Customers Acquired) / # of Customers at Beginning of Period × 100

• CRC = (# of Customers at End of Period - # of New Customers Acquired) / # of Customers at Beginning of Period × 100

• CRC = (# of Customers at End of Period + # of New Customers Acquired) / # of Customers at Beginning of Period × 100

• CRC = (# of Customers at End of Period ÷ # of New Customers Acquired) / # of Customers at Beginning of Period × 100

Which of the following best describes the purpose of calculating Customer Retention Rate (CRC)?

• To assess the percentage of customers who continue to use a service over time

• To calculate total sales revenue

• To determine the cost of marketing campaigns

• To measure how many new customers are acquired