How To Calculate Customer Acquisition Cost

I’ve improved our analytics set up at Speak Ai recently, but there are still quite a few gaps in historical data.This becomes apparent when trying to fully understand our customer acquisition cost (CAC) since we have started. There are several reasons why I’m trying to calculate this:1. It’s hard to improve what you can’t measure2. Your awareness of your CAC can influence business decisions3. One of the defining factors in knowing if you have a viable business model4. You want to keep customer acquisitions costs low as you scale

Some Good Resources

Customer Acquisition Cost: The One Metric That Can Determine Your Company’s Fate Customer Acquisition Cost (CAC): How to Calculate & Reduce It The Ultimate Guide to Calculating, Understanding, and Improving CAC in 2020 How To (Actually) Calculate CAC at andrewchen How to Calculate Customer Acquisition Cost (CAC)

Awesome Slide Share:

If you’re not sure of what your “cost of sales and marketing” may be, consider the following expenses for this metric:– Ad Spend– Employee Salaries– Creative Costs– Technical Costs– Publishing Costs– Inventory Upkeep