How to Calculate Customer Acquisition Costs (CAC)
Customer acquisition cost (CAC) is the metric companies use to calculate the money required to acquire a new customer. The metric is calculated by adding your marketing and sales costs, then dividing by the number of new customers acquired within that period. CAC answers the question of how much it costs for your organization to acquire a new customer. In this post, we’ll share why CAC is important, how to calculate CAC, and then how to optimize the metric.
The field of customer analytics provides powerful – and profitable – advantages to organizations. The companies that continue to gain market share attribute their success to understanding the customer. Sometimes, however, executives in organizations need to be reminded of the benefits of customer analytics. Make sure to integrate the following into all your conversations with decision-makers when considering investing in customer analytics.Read More
Tons of people try to figure out who unfriended them on Facebook or unfollowed them on Instagram or Twitter. They use apps and various steps to get the bottom of these little mysteries.
Shouldn’t your company or organization be at least this curious about lost or lapsed customers, donors and fans? Wouldn’t it be so very valuable to know who no longer includes you in their life — and more importantly, why?
Well, winning back lost customers is tough — they all probably think they have good reasons as to why their customer satisfaction waned.
The Metrics Your CEO Really Cares About
Out with the old, in with the new. It’s a new year, so let’s start our marketing programs the right way by tracking our performance. Metrics, or key performance indicators (KPIs), should be set up front so that the marketing team knows what goals they are striving to reach. Metrics alert us to which strategies we should replicate and which ones to improve. The following checklist includes the metrics vital to your marketing and sale’s efforts. The metrics provide insight for each stage on the customer lifecycle. Based on your industry, these should be reviewed over a given period.
Passion Backed by Facts
Tired as we all are of terms like “innovative”, “strategic” and “leading-edge”, such endless repetition is understandable — in the marketing lexicon there are only so many words and phrases available to describe the particulars of the business world.
Lately, I’ve noticed that I’m suffering market-speak fatigue with another word: “passion.” Apparently, every company on earth has a passion for what they do. Somewhere there must be a kitchen utensil company claiming they’re passionate about making shrimp deveiners.
Some of these claims are certainly genuine, but many companies are just trying to cloak their brand in a human emotion rather than admitting that every decision they make is driven by their bottom line.