Total sales and marketing costs include all expenses, including salaries, content production costs, commissions, bonuses, and any other costs associated with attracting new leads and converting them into purchases.
Successful companies strive to continually reduce customer acquisition costs not only to increase profits. A low CAC is the most important indicator of a quality sales, marketing, and high-quality service strategy.
How to calculate customer acquisition cost
Step 1: Choose a time period for calculation.
To narrow down the amount of data, determine the time period for which you are calculating CAC – for example, a month, quarter, or year.
Step 2: Calculate CAC using the formula.
Add up your total marketing and sales costs and divide the resulting cambodia phone number data amount by the number of new customers
acquired during the selected period. The resulting value will correspond to your company’s costs to attract a new customer.
Let’s assume that your company spends 500 thousand rubles on sales and 300 thousand rubles on marketing. And over the last quarter, your company attracted 800 new customers. Then the cost of attracting a customer in this quarter will be 1 thousand rubles ((500 thousand + 300 thousand) / 800 = 1 thousand).
Step 3. Compare your CAC with key business metrics.
Once you have calculated the CAC for your company, you can compare this value with other key business metrics. This will give you valuable information about your marketing strategy, sales, and customer service.
Types of expenses that need to be included in the CAC formula
If you do not know how to calculate “sales and marketing costs”, focus on these expense items.
Employee salaries
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Creative Costs
Everything you spend on creating content. This could be money spent on attracting betting data ambassadors and influencers to promote your company, or even money spent on lunch at a creative team meeting.