#1 Six Critical Numbers to Know for a Powerful ROI and How to Calculate them

  1. Customer Acquisition Cost (CAC): How much it costs your company to acquire a new
  2. customer. Review acquisition-marketing efforts over past 12 months; divide into efforts resulting in a direct sale separate from those that resulted in a lead that was then converted into a sale. I am not suggesting campaigns that generate lots of leads aren’t worthwhile, but for CAC the only customers who count are those who resulted in a sale. Officially marketing salaries are an acquisition cost so if you decide to include staff cost, split the expense between new and existing customer analysis or else the CAC will be over-inflated. The average CAC spans a wide range based on industry, view Entrepreneur Magazine examples from retail, travel, telecom, and financial marketplaces.Customer Acquisition Cost Calculation:Total cost of acquisition campaigns / Total # new customers

 

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