How to Calculate Customer Acquisition Cost
Posted: Sun Dec 22, 2024 7:46 am
There are many ways to calculate this important indicator. At the first stages, the cost of attracting a client can be determined using a simplified formula. The advantage of this method is that it is less labor-intensive, although it allows for a preliminary assessment. Only advertising costs are taken into account, and the influence of other factors is neglected.
A simplified method for obtaining CAC looks like this:
CAC = Advertising costs / Number of acquired customers
It is enough to sum up the values indonesia mailing list of all expenses for conducting advertising campaigns (traffic channel) for the reporting period and divide the obtained value by the number of attracted clients. Using this method, an assessment of the effectiveness of different channels is determined for conducting a comparative analysis.
Let's imagine that it is planned to spend 200 thousand rubles on contextual advertising for one month. At the end of the reporting period, the client base has expanded by 40 users. Let's calculate the indicator:
CAC = 200,000 / 40 = 5,000 rub.
Therefore, the cost of attracting a client for a company is 5,000 rubles.
There are more complex and precise formulas for determining the CAC, taking into account other expenses: salaries of managers and marketers, cost of equipment and software (CRM, ERP), logistics, production and storage of products, etc. The indicators used must correspond to the accepted reporting period (week, decade, month, quarter, year).
CAC = (Advertising costs + Salaries + Equipment and software + Logistics + Other costs) / Number of clients received
Let's look at the example above: the advertising budget is 200 thousand rubles and the number of attracted clients is 40. Let's enter new data: Total salaries - 65 thousand rubles, software and equipment costs - 2 thousand rubles, logistics - 2 thousand rubles. We substitute the data into the formula and calculate the CAC:
CAC = (200,000 + 65,000 + 2,000 + 2,000) / 40 = 269,000 / 40 = 6,725 rub.
Taking into account other expense items, the company spends 6,725 rubles per month to attract one new customer.
As a rule, each company calculates this most important indicator in its own way, taking into account the specifics of its activities and depending on the market situation. It is necessary to strive to take into account all expense items related to customer acquisition activities. Only in this case can relevant results be obtained for analysis and development of a marketing strategy.
A simplified method for obtaining CAC looks like this:
CAC = Advertising costs / Number of acquired customers
It is enough to sum up the values indonesia mailing list of all expenses for conducting advertising campaigns (traffic channel) for the reporting period and divide the obtained value by the number of attracted clients. Using this method, an assessment of the effectiveness of different channels is determined for conducting a comparative analysis.
Let's imagine that it is planned to spend 200 thousand rubles on contextual advertising for one month. At the end of the reporting period, the client base has expanded by 40 users. Let's calculate the indicator:
CAC = 200,000 / 40 = 5,000 rub.
Therefore, the cost of attracting a client for a company is 5,000 rubles.
There are more complex and precise formulas for determining the CAC, taking into account other expenses: salaries of managers and marketers, cost of equipment and software (CRM, ERP), logistics, production and storage of products, etc. The indicators used must correspond to the accepted reporting period (week, decade, month, quarter, year).
CAC = (Advertising costs + Salaries + Equipment and software + Logistics + Other costs) / Number of clients received
Let's look at the example above: the advertising budget is 200 thousand rubles and the number of attracted clients is 40. Let's enter new data: Total salaries - 65 thousand rubles, software and equipment costs - 2 thousand rubles, logistics - 2 thousand rubles. We substitute the data into the formula and calculate the CAC:
CAC = (200,000 + 65,000 + 2,000 + 2,000) / 40 = 269,000 / 40 = 6,725 rub.
Taking into account other expense items, the company spends 6,725 rubles per month to attract one new customer.
As a rule, each company calculates this most important indicator in its own way, taking into account the specifics of its activities and depending on the market situation. It is necessary to strive to take into account all expense items related to customer acquisition activities. Only in this case can relevant results be obtained for analysis and development of a marketing strategy.