Post by account_disabled on Jan 25, 2024 2:56:01 GMT -5
Let me expand on that before diving into two other more minor issues. Attribution problems with getting more granular data The most useful segmentation you could do with CAC would be with your customer segments. For example if you look at our pricing model we’re willing to spend many times more our average CAC on acquiring customers for the
Agency plan But it’s close to impossible to get any reliable data to know that you spent X on segment A or Y on segment B which would be needed for Phone Number List this calculation. Most of your marketing channels target multiple segments. There are possible solutions for creating more reliable attribution models but that usually requires tons of data and resources to create a custom data ecosystem.
And even this can’t solve attribution problems some BB businesses targeting enterprise segments face. For that reason I’d suggest most people stick to simple CAC formulas. into account It’s intuitive to take your monthly marketing and sales spend and divide that by the number of new customers you got that month. I used that too in the examples here. But this can only work if your spend is somehow constant month over month. The problem lies in your business cycle. If you consider new users in March then a significant portion of them converted thanks to your marketing activities in February or even earlier.