Customer Acquisition Cost (CAC) Calculator | Nickelled

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Tracking customer acquisition cost accurately is a difficult business, especially if you have a blend of marketing channels. Use our simple calculator to get an estimate based on your actual data.To build a viable business, your revenue from a customer MUST exceed the money that you spent to acquire that customer.

That’s why you should pair CAC with LTV (and why we did above) – it’s a measurement of profitability.

For many businesses, this might be very simple – if you sell cars, for instance, people will buy very infrequently and so the total value of that customer is probably just the profit on one car.

from Pinboard (jeromekatz)