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Customer Acquisition Flashcards

7 cards from real GMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Customer Acquisition flashcards as text
  1. What is 'channel saturation' and how should a growth marketer respond to it?

    Answer: When a channel's returns diminish as competition or audience exhaustion increases; respond by diversifying to new channels

    Channel saturation occurs when a channel's efficiency declines due to audience exhaustion or rising competition, signaling the need to test new acquisition sources.

  2. Which acquisition metric measures what percentage of visitors from a specific channel ultimately become paying customers?

    Answer: Channel conversion rate (CVR)

    Channel conversion rate tracks the proportion of visitors from a given acquisition source who complete the desired purchase action.

  3. A company's CAC is $200 and average CLV is $400. What does this ratio suggest?

    Answer: The unit economics are acceptable but should be improved; ideal CLV:CAC is 3:1 or higher

    A 2:1 CLV:CAC ratio means the business earns twice what it spends to acquire a customer, which is marginal; a 3:1 or higher ratio is the typical healthy benchmark.

  4. What is the key advantage of running acquisition campaigns on niche communities (e.g., Reddit, Slack groups) versus broad social platforms?

    Answer: Higher audience relevance and trust, leading to better conversion among early adopters

    Niche communities contain self-selected audiences with high relevance to specific topics, and authentic participation builds trust that broad platforms lack.

  5. In growth marketing, what does 'TOFU' refer to in the context of the acquisition funnel?

    Answer: Top of funnel — awareness-stage content or ads aimed at cold audiences

    TOFU (top of funnel) describes awareness-stage tactics designed to introduce the brand to people who don't yet know it exists.

  6. Which approach best describes 'growth hacking' in customer acquisition?

    Answer: Rapid experimentation across marketing and product to find unconventional, scalable acquisition methods

    Growth hacking involves fast, data-driven experimentation across channels and product features to find cost-effective, scalable ways to grow the user base.

  7. A marketer wants to reduce CAC without decreasing new customer volume. Which tactic most directly achieves this?

    Answer: Improving conversion rate optimization (CRO) on existing acquisition flows

    CRO improves the percentage of existing traffic that converts, meaning the same acquisition spend generates more customers and lowers CAC.