Stop Wasting Money! What is Your Customer Acquisition Cost?

customer acquisition cost CAC

Are you spending your money wisely?

Your Customer Acquisition Cost or CAC is the total cost spent on acquiring new customers (marketing/sales expense) divided by the number of new customers acquired during that particular period.

If you invested $1000 in marketing/sales in a one month period and acquired 10 new customers as a direct result of that marketing and promotion, then your acquisition cost is $100 per new client.

All successful businesses measure their customer acquisition costs. Luckily, promotional activity on the web can be measured very accurately.

Make sure that the pricing of your products and services cover you CAC.

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Are you ready to grow your business now? If you’re ready to take the next step and make your business more profitable, please reach out to us.

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The Importance of Customer Lifetime Value

measuring customer lifetime value

Measuring Customer Lifetime Value is an important metric for your business.

When starting a business, it’s easy to overlook some of the more important details once you start getting a customer base. Most businesses rely on getting as many customers as they can as cheaply as they can. This may have been the way to do things in the past, but now things have changed.

So what is Customer Lifetime Value? CLV is something that all big businesses focus on because of its importance. It is the measure of dollars coming in from a customer over the entire relationship with that customer to the business. However, since you cannot speculate how long each customer you have will stay loyal to you, you look at it over a certain period of time. Once you start doing this, the data you collect can show you some fascinating things.

One of the things you might find is where your marketing efforts fell short compared to one customer over others. The other thing measuring Customer Lifetime Value can do is help you refine your marketing strategy so that you are targeting the right customers.

There are many benefits that come from analyzing Customer Lifetime Value including maximizing your return on marketing campaigns, helping to identify and reward those customers who are loyal, and managing your customer relationship as a monetary investment instead of counting them as a number.

Huge industry leaders in eCommerce are outperforming all the rest because of their focus on retaining customers. Some eCommerce giants are reporting 60-80% retention rates while others are reporting only a 20% rate!

Do you want to learn more about CLV?

Are you ready to grow your business now? If you’re ready to take the next step and make your business more profitable, please reach out to us.

If you like the information you are receiving, please share this post.

Are You Wasting Money? What is Your Customer Acquisition Cost?

customer acquisition cost

What does Customer Acquisition Cost mean to you?

Your Customer Acquisition Cost, or CAC, is the total cost spent on acquiring new customers (marketing/sales expense) divided by the number of new customers acquired during that particular period.

If you invested $1000 in marketing/sales in a one month period and acquired 10 new customers as a direct result of that marketing and promotion, then your acquisition cost is $100 per new client.

All successful businesses measure their acquisition costs. Luckily, most promotional activity on the web can be measured very accurately.

If you are looking to succeed and make a profit, you must make sure that the pricing of your products and services covers your CAC.

Are you ready to grow your business now? If you’re ready to take the next step and make your business more profitable, please reach out to us.

If you like the information you are receiving, please share this post.

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