Ace the Stukent Marketing Exam 2025 – Unleash Your Inner Marketing Maverick!

Customer acquisition cost (CAC) is defined as the total expense incurred by a company to acquire a new customer. This includes all costs related to marketing and sales efforts, such as advertising spend, sales team salaries, and any promotional costs necessary to entice a prospective customer to make a purchase. Understanding CAC is vital for businesses as it helps them evaluate the efficiency of their marketing strategies and understand how much they should invest in acquiring new customers relative to the revenue those customers are expected to generate over time.

In contrast, the other choices relate to different aspects of marketing and business finance. The revenue generated per customer focuses on the income brought in, but does not provide insight into the costs associated with acquiring that customer. The average spend per marketing channel deals with how much is spent in various marketing avenues, which is more about budget allocation than the overall cost of customer acquisition. Investment in customer retention strategies pertains to efforts made to keep existing customers, which is an essential area of focus but is separate from the costs involved in initially securing new customers. Thus, the correct understanding of CAC centers around the total expense of acquiring a customer, making the chosen answer accurate and relevant in the context of customer value and overall marketing effectiveness.