- A.Reichheld's loyalty metric: percentage of Promoters (9-10) minus Detractors (0-6) on the "would you recommend" question, ranging from -100 to +100.
- B.The total cost — sales, marketing, content, technology — divided by new customers acquired. The denominator of the LTV/CAC ratio. ✓
- C.The percentage of customers who cancel in a given period — the complement of retention, and one of the most important subscription metrics.
- D.The total cost — sales, marketing, content, technology — divided by new customers acquired. The denominator of the LTV/CAC ratio.
Customer Acquisition Cost (CAC) is the total cost — sales, marketing, content, technology — divided by new customers acquired. The denominator of the LTV/CAC ratio. The other options describe related but distinct concepts in Digital & Analytics — see the deep-dive guide for the full distinction.
How to think about questions like this
Sets the floor on what a customer must be worth. Questions like this test whether you can distinguish Customer Acquisition Cost (CAC) from neighboring concepts. The most common trap is choosing a closely-related concept that sounds similar but applies in a different context.
When you see a definition question on an exam, do two things: (1) translate the question into your own words, then (2) generate the answer in your own words before reading the options. This avoids the cognitive bias of recognizing a familiar phrase as correct just because it is familiar.