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Cost per Customer
The expense associated with reaching a single customer through a specific marketing lever.
Implications
The average cost of serving or supporting each customer, often used in customer service or subscription-based businesses to measure the efficiency and profitability of customer interactions.
Example
Example: A SaaS company calculates its cost per customer by dividing total support and maintenance costs by the number of active users, helping to identify areas for cost reduction.
Related Terms
Different from CPA, which measures the cost of acquiring a customer, cost per customer focuses on the ongoing expenses related to serving or supporting existing customers.
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