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BAR CHART: Customer Acquisition Cost by Channel ($) | Organic Search: $45, Paid Search: $180, Social Media: $95, Referral: $22, Content: $68. LINE CHART: 12-Month Customer Value by Channel ($) | Organic: $425, Paid Search: $380, Social: $340, Referral: $520, Content: $445. Which channel has the best ROI (Customer Value / CAC)?

GMAT · 2022 · Data Insights
Question:
BAR CHART: Customer Acquisition Cost by Channel ($) | Organic Search: $45, Paid Search: $180, Social Media: $95, Referral: $22, Content: $68. LINE CHART: 12-Month Customer Value by Channel ($) | Organic: $425, Paid Search: $380, Social: $340, Referral: $520, Content: $445. Which channel has the best ROI (Customer Value / CAC)?
Question Image

Options

(A) Organic Search
(B) Paid Search
(C) Social Media
(D) Referral
(E) Content
Answer: (D) Referral

Explanation:
Calculate ROI: Organic = $425/$45 = 9.4x; Paid = $380/$180 = 2.1x; Social = $340/$95 = 3.6x; Referral = $520/$22 = 23.6x; Content = $445/$68 = 6.5x. Referral has best ROI at 23.6x.

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