The pricing strategy can significantly affect the customer acquisition cost (CAC). If the price is set too high, it may deter potential customers, increasing the CAC as more marketing efforts will be needed to convince customers to purchase. Conversely, if the price is set too low, while it may attract more customers and lower the CAC, it could also result in lower profit margins. Therefore, it's crucial to find a balance in pricing strategy to optimize both CAC and profit margins.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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