There are four main types of customer acquisition costs: paid advertising, organic marketing, referral marketing, and direct sales.
Paid Advertising: Paid advertising is when a brand pays to have their ad placed on another platform, typically through a pay-per-click (PPC) model. This can be done through search engine marketing (SEM), social media advertising, or display advertising.
Organic Marketing: Organic marketing is any form of marketing that doesn’t involve paying for placement. This includes SEO, content marketing, social media engagement, and email marketing.
Referral Marketing: Referral marketing is when a customer tells their friends about a product or service and those friends then make a purchase. This can be done through word-of-mouth, online reviews, or referral codes.
Direct Sales: Direct sales is when a company sells their product or service directly to the customer without going through a middleman. This can be done online or in person.