CAC in marketing: how to calculate acquisition cost
CAC (Customer Acquisition Cost) measures how much it costs to acquire each customer. Learn to calculate it correctly, understand the LTV/CAC ratio, and...

Engagement marketing is the set of strategies and tactics aimed at creating meaningful, ongoing interactions between a brand and its audience, with the goal of building lasting relationships that go beyond a one-time transaction.
The difference between transactional marketing and engagement marketing is the difference between a sale and a relationship. The former seeks the one-off conversion; the latter builds the context in which conversions happen naturally and repeatedly.
In competitive markets where the offering of digital products and services has multiplied in recent years, engagement is what separates brands that survive from those that become commodities.
Not everything that can be measured in engagement marketing is equally relevant. There is a fundamental distinction between vanity metrics and impact metrics.
These metrics grow easily with advertising investment but do not reflect a real relationship with the brand. They can be bought or inflated without improving the business.
| Metric | What it measures | How to interpret it |
|---|---|---|
| Email open rate | Relevance of communication | Benchmark: 20-30% in B2C, 25-40% in B2B |
| Time on page / session | Content quality | Compare by audience segment |
| Return rate (recurring users) | Real loyalty | A >40% returning user rate is healthy |
| Net Promoter Score (NPS) | Likelihood of recommendation | NPS > 50 is excellent; > 70 is world-class |
| Purchase frequency | Repeat buying in ecommerce | Second purchase = customer; third = loyal customer |
| Customer Lifetime Value (LTV) | Total value of the relationship | Engagement multiplies LTV |
| Social media engagement rate | Interactions / followers ratio | More relevant than follower count |
Personalization is the foundation of effective engagement. Users expect brands to treat them as individuals, not as numbers in a database.
Contextual personalization goes beyond "Hi, [name]" in an email. It involves adapting:
Amazon attributes between 35% and 40% of its revenue to its personalized recommendation engine. Netflix estimates that 75% of content consumed comes from its personalization algorithms. Those numbers are not accessible to most brands, but the principle is.
Well-designed loyalty programs are engines of continuous engagement. The most effective ones are not based solely on points per purchase, but on broader behaviors:
Starbucks' loyalty program has 75 million active members and generates 57% of the chain's sales in the US. Its effectiveness does not come from the points themselves, but from the gamification, personalization, and sense of belonging it creates.
Content that educates, entertains, or solves specific problems builds engagement organically. A user who learns something useful from a brand remembers it and returns.
Brands that consistently publish valuable content achieve:
Engagement content does not sell directly; it builds the authority and trust from which the sale becomes natural.
Engagement is built not only with the right message but with the right message at the right time. Marketing automation tools allow triggering communications based on specific behaviors:
Brands that build communities around their product generate the highest possible level of engagement: the user does not just consume — they contribute.
Examples of community strategies:
The Notion user community generated thousands of templates, tutorials, and use cases that Notion could never have created internally. That user-generated content is engagement in its purest form: users are so committed to the product that they invest their time in contributing to it.
Engagement is bidirectional. Brands that only broadcast — that publish, send emails, and advertise without listening — do not build relationships; they build monologues.
NPS, CSAT, and CES (Customer Effort Score) surveys, post-purchase feedback forms, customer interviews, questions on social media: all these actions demonstrate to the customer that the brand listens and uses their input to improve.
And when the customer sees that their feedback translates into real improvements, engagement deepens: it becomes a relationship where both parties contribute.
Engagement and conversion are complementary, not alternatives. A well-executed engagement strategy directly impacts conversion metrics in several ways:
Greater familiarity = less friction at purchase: a user who has been interacting with a brand's content for weeks arrives at the buying process with many of their objections already resolved.
Greater trust = higher conversion rate: engagement builds trust, and trust is the number-one factor in online purchase decisions.
Greater frequency = higher LTV: a genuinely engaged customer buys more often, spends more per purchase, and stays longer.
Lower acquisition cost: highly engaged customers refer other customers organically. The cost of acquiring a referred customer is up to 5 times lower than that of a customer acquired through paid advertising.
The pages and flows where engagement converts into action — landing pages, product pages, checkouts — must be optimized to not waste the prior work. An excellent engagement strategy with a poor conversion experience is a missed opportunity.
To identify the friction points that are slowing the conversion of your most engaged audience, you can start with a free audit at Scan&Boost.
And if you want to work on engagement as part of a comprehensive optimization strategy, learn about our CRO agency service.
Adrià Vidal is the founder of Boost. +1,000 optimization actions, +47.8% average conversion increase per client, +€7.8M in additional revenue generated.
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