Do you measure your customer acquisition cost?

Firstly, let’s establish what I mean by ‘customer acquisition cost’ (CAC). 

Basically, it is your total cost of sales/marketing for a set period of promotion divided by the number of new clients you acquired during this period.

So, if you spent $1,500 in total and gained 20 new customers, your CAC would be $75 per new client.

You should be measuring your return on investment (ROI) and ROI per customer.

This means you also need to measure your CAC to know if you are earning enough to cover the costs to acquire new customers.

Promotional activity on the web can be measured accurately. A potential client can be followed on their journey from clicking on the search results or ads to becoming a buyer.

If you would like to know more, just contact us for a consultation.

Visit our website:

Discover strategies, tips, and techniques about how to market your business online.  It's easy to get started.  Just complete the information below.