Gauging customer acquisition costs is crucial for understanding marketing performance with a target demographic, as retaining existing customers is also vital for growth. Customer Acquisition Cost (CAC) refers to expenses associated with acquiring new customers, including salaries, advertising, and equipment. Calculating CAC involves adding marketing costs and dividing by the total number of acquired customers. To reduce CAC, businesses can personalize their marketing efforts, focus on existing customers, build a stronger community, retarget customers, create valuable content, try A/B testing, experiment with different types of advertising, start an affiliate marketing program, and offer a more seamless experience. These strategies aim to improve customer retention, increase organic advocacy, and optimize marketing efforts, ultimately making the company's marketing budget more cost-effective. By implementing these tips, businesses can lower their customer acquisition costs and achieve better results in the long run.