Download the dataset below to solve this Data Science case study on Customer Acquisition Cost.
Customer Acquisition Cost (CAC) is a critical metric for businesses that want to assess the efficiency and cost-effectiveness of their marketing efforts. It represents the average cost incurred by a company to acquire a single customer. Analyzing CAC helps businesses optimize their marketing strategies, allocate resources effectively, and improve their return on investment (ROI).
The dataset includes the following columns:
- Customer_ID: Unique identifiers for customers.
- Marketing_Channel: The marketing channel through which customers were acquired (e.g., Email Marketing, Online Ads, Social Media).
- Marketing_Spend: The amount of money spent on marketing for each channel.
- New_Customers: The number of new customers acquired through each marketing channel.
Your task is to:
- CAC values for each marketing channel.
- Data visualizations illustrating CAC by marketing channel.
- Identification of the most cost-effective marketing channel for customer acquisition.
- Insights and recommendations for optimizing marketing strategies based on CAC analysis.