CAC: How to Calculate Customer Acquisition Cost
Posted: Sun Jan 19, 2025 10:06 am
Do you know how much you are investing to acquire each new customer? It's time to calculate your CAC! Learn how to evaluate this index.
Entrepreneurs make decisions all the time. Unfortunately, they often make the wrong choices. This happens because most companies still rely on intuition to define strategies and evaluate results.
Don't be one of them.
If you want to improve your results, use data to overseas chinese in australia data advantage. Establish your own metrics – and don’t forget to calculate CAC.
What is CAC?
Every business wants to increase sales, right? Therefore, most sales and marketing actions aim to win new customers.
From a financial point of view, this effort implies costs , as you will have to invest in media campaigns or printed materials, for example. In addition, you will need a team of salespeople, who will bear commissions and salaries.
Therefore, CAC is the Customer Acquisition Cost, that is, how much your company invested to convert a visitor into a consumer of your brand.
This metric involves the team's work throughout the entire sales funnel, from attracting the lead to completing the sale.
To make sure the calculation is correct, you need to have good control over your sales , noting how many customers you are able to generate and what investments were necessary at each stage of the process.
How to calculate CAC
The first step in calculating CAC is to map the sectors involved in the sales process and understand the costs involved in acquiring customers.
This stage is quite specific, as it varies depending on the size of the company and the strategy adopted. However, the most common costs are:
Marketing: paid media ads online and offline, tools, telephone, internet, staff salaries, event participation, printing of flyers, lead lists , among others.
Sales: printing of business cards and physical presentations, management systems , CRM , telephone, internet, staff salaries, commissions, etc.
Once you understand all the parties involved, define the period you want to analyze : every 30 days, every six months or every year. Once you have done this, calculate how many customers were acquired in the chosen period of time .
Entrepreneurs make decisions all the time. Unfortunately, they often make the wrong choices. This happens because most companies still rely on intuition to define strategies and evaluate results.
Don't be one of them.
If you want to improve your results, use data to overseas chinese in australia data advantage. Establish your own metrics – and don’t forget to calculate CAC.
What is CAC?
Every business wants to increase sales, right? Therefore, most sales and marketing actions aim to win new customers.
From a financial point of view, this effort implies costs , as you will have to invest in media campaigns or printed materials, for example. In addition, you will need a team of salespeople, who will bear commissions and salaries.
Therefore, CAC is the Customer Acquisition Cost, that is, how much your company invested to convert a visitor into a consumer of your brand.
This metric involves the team's work throughout the entire sales funnel, from attracting the lead to completing the sale.
To make sure the calculation is correct, you need to have good control over your sales , noting how many customers you are able to generate and what investments were necessary at each stage of the process.
How to calculate CAC
The first step in calculating CAC is to map the sectors involved in the sales process and understand the costs involved in acquiring customers.
This stage is quite specific, as it varies depending on the size of the company and the strategy adopted. However, the most common costs are:
Marketing: paid media ads online and offline, tools, telephone, internet, staff salaries, event participation, printing of flyers, lead lists , among others.
Sales: printing of business cards and physical presentations, management systems , CRM , telephone, internet, staff salaries, commissions, etc.
Once you understand all the parties involved, define the period you want to analyze : every 30 days, every six months or every year. Once you have done this, calculate how many customers were acquired in the chosen period of time .