Acquisition Costs

Acquisition costs refer to the expenses incurred by a company to obtain new customers or clients. This can include various expenditures such as marketing, advertising, sales commissions, and promotions aimed at attracting potential buyers. Essentially, it’s the total amount a business spends to persuade someone to make their first purchase. Understanding acquisition costs helps businesses evaluate the effectiveness of their marketing strategies and ensures that they spend their resources wisely to grow and sustain their customer base. Keeping these costs manageable is crucial for profitability and overall business success.