Sales Quote Of The Day
The purpose of the business is to create a customer who creates more customers.
Today’s Sales Nugget
Do you know your per customer acquisition cost?
Do you know why is it soo important to calculate this cost?
Whenever I interact with business owners or sales professionals, they do not know if their marketing efforts are paying them enough. They promote their business on print media, web-media, send SMS, plan emails campaigns and a lot more. But then they do not know if they should continue these marketing activities or not. They either randomly stop them or do not know which medium is giving them right results.
Knowing per customer acquisition cost (CAC) enables you to decide the direction in which you must invest. When you know CAC, you would know which source of lead is working for you and which one is not working for you. The one which is working for you could be the one where you can increase your marketing investments and the one which is not, re-strategies.
How do you calculate CAC?
Simple Equation =
Total Cost Of Sales & Marketing
Total Customers Acquired
Your total cost of sales & marketing is INR 5,00,000/- and you acquired 30 customers. Then your Per CAC will be INR 16,667/-
Knowing this number is key to improve your marketing & sales strategies.
Numbers change the game. Know your CAC and per lead generation cost.
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