Customer Acquisition Costs

Customer Acquisition Costs, better known as CAC, have changed dramatically in the past year. As the competition rose, the price of engaging a customer rose, and the channels to engage made it more expensive as the algorithms became more difficult.

Unfortunately, many companies got caught with their pants down and are now paying the price. The change in the economic environment has forced many to cut costs. Others need money, and the cost of the cash will be painful. A company worth $1b might now be worth $300k. It could take another decade to get back to $1b. Who knows, but there is a serious check in the start-up world, particularly consumer product companies.

Forward-thinking companies who figured this out early on by entering their own retail stores will change the retail landscape. Our streets will look very different a year from now. The rise in interest rates will force commercial real estate to decrease in price. It is a time that must come to create growth in our cities.

Retailers are finally thinking about the consumer journey. That journey will be in person, it will be digital, it must be seamless, it will be inspiring, it will be about trust, it will be curated, and it will be enjoyable. And the cost of CAC might become less expensive.