Chan works in marketing and is analyzing the performance of various advertisements for a recently-released video game. What metric does Chan use to determine if the game is making a profit?
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Indie-Fund
Indie-Fund
PlayCanvas
PlayCanvas
CAC
CAC
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CAC (Cost to Acquire Customer)
The metric that Chan uses to determine if the game is making a profit is CAC, which stands for Customer Acquisition Cost. This metric helps Chan assess how much it costs to acquire each new customer for the game. By comparing the CAC to the revenue generated from the game, Chan can determine if the game is making a profit.
To determine if the game is making a profit, Chan would typically use the metric called "CAC" or Customer Acquisition Cost. CAC refers to the amount of money that a company invests in acquiring a new customer.
To calculate CAC, Chan would need to consider the total marketing and advertising expenses incurred in promoting the video game, divided by the number of new customers acquired through those efforts. This way, he can determine the cost of acquiring each customer.
By comparing the CAC to the revenue generated from the video game sales, Chan can determine if the game is making a profit. If the revenue generated per customer exceeds the CAC, it indicates that the game is profitable. If the CAC is higher than the revenue generated per customer, it suggests that the game is not making a profit at the current cost of customer acquisition.