Among the various advantages that the internet provides in relation to traditional marketing , one of the most important is the possibility of monitoring and measuring the actions carried out.
Through metrics , the company can understand what is working and what is not when it comes to achieving business objectives.
One of the most relevant belgium telegram data metrics is Customer Acquisition Cost — or CAC . In this article, you will learn how to calculate CAC and why it is so important for managing your business. Check it out!
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How to calculate CAC?
One of the biggest mistakes made by those who work with this metric is precisely in understanding which costs should be considered for the calculation.
Typically, when asked about loyalty system in b2b sales: how to create and will there be results this topic, entrepreneurs and business owners tend to consider customer acquisition costs only as investments made in marketing campaigns and actions . However, there are other numbers that need to be taken into account.
For the calculation to be accurate and relevant for decision-making , it is also necessary to consider the following costs:
- Management tools, salaries and human resources expenses, both in the sales and marketing areas;
- Investment in all marketing actions, such as media purchasing, events and any advertising to generate leads and sales;
- Travel, if you need to visit clients in other locations.
Tip: Do you have high travel costs in your CAC? Get to know Inside Sales!
Telephony and equipment used by salespeople
With these numbers in whatsapp database brazil hand, it is time to find out how many new customers the company acquired during the period chosen for analysis. It is worth remembering that, for this calculation, only customers acquired through the actions considered above should be considered. Customers coming from other channels, such as referrals from other old customers, should not be considered.
From this, the total cost, that is, the sum of all costs involved in the marketing and sales areas , must be divided by the number of customers acquired in the period.
The result of the division will then be the average amount spent by the company to acquire each new customer. For example, if your company spends R$10,000 on marketing and R$5,000 on sales to acquire 100 customers, this means that your CAC is R$150.
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Why is it important to calculate the CAC of an e-commerce?
Basically, this number is important, as it will help managers in making strategic decisions , since the higher the CAC , the lower the company’s profitability and return.
For example, if your average ticket — that is, the average amount spent by a customer — is R$100 and your CAC is R$150, it means that your company is losing profitability and this makes the business model unsustainable. Of course, we would need to consider LTV, but we will not address this concept now.
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Keep an eye on this metric, and to help you, we created the CAC Calculator Spreadsheet ! With it, you can calculate your Customer Acquisition Cost and plan how to increase your profits!
Or, if you want to count on the support of a Digital Marketing agency for this, just contact us !