How To Calculate Customer Acquisition Cost

How To Calculate Customer Acquisition Cost

This is is part of my live-learning series! I will be updating this post as I continue through my journey. I apologize for any grammatical errors or incoherent thoughts. This is a practice to help me share things that are valuable without falling apart from the pressure of perfection. 

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 measure 2. Your awareness of your CAC can influence business decisions 3. One of the defining factors in knowing if you have a viable business model 4. 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

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