{"id":58,"date":"2015-10-21T08:18:32","date_gmt":"2015-10-21T08:18:32","guid":{"rendered":"https:\/\/tuneseidelin.com\/?p=58"},"modified":"2017-06-22T10:59:17","modified_gmt":"2017-06-22T10:59:17","slug":"how-to-calculate-customer-acquisition-cost","status":"publish","type":"post","link":"https:\/\/tuneseidelin.com\/how-to-calculate-customer-acquisition-cost\/","title":{"rendered":"How to Calculate Customer Acquisition Cost"},"content":{"rendered":"
One of the secrets to an unlimited marketing budget, is knowing how to calculate customer acquisition cost (CAC).<\/p>\n
And by the end of this post, you’ll know exactly how to go about it…<\/p>\n
Plus I’ll reveal little known details that’ll give you an almost unfair advantage over 99% of your competition (because they are clueless about these things).<\/p>\n
Now let’s get started…<\/p>\n
The calculation is very simple – just use this “customer acquisition cost formula”:<\/p>\n
Money Spend on Customer Acquisition \u00a0\/ Number of New Customers = Customer Acquisition Cost<\/strong><\/p><\/blockquote>\n
And if you actually do the calculation for your business.<\/p>\n
Then you’re already ahead of most of the competition.<\/p>\n
Because most business owners don’t know this number.<\/p>\n
But to get the most of this very useful metric, we have to get a little more advanced than this.<\/p>\n
First of all you’ll have to know…<\/p>\n
How to Calculate Customer Acquisition Cost by Source<\/h2>\n
Have you ever heard this quote?<\/p>\n
“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”<\/em>
\n– John Wanamaker<\/p>\nWanamaker\u00a0points to a very real problem for many business owners.<\/p>\n
But if he\u00a0knew what I’m about to tell you, his problem would be solved…<\/p>\n
You see, if you use the above formula for each customer source in your business\u00a0(just remember to set up tracking mechanisms, so you know where each customer comes from and how much you spend on each source).<\/p>\n