Maintenance, growth, and expansion of the business. Nothing lasts forever, and this is especially true of today’s fickle customers. Customers move away, grow out of the demographic, or just plain move on, and somebody has to take their place. Despite the oft-repeated claim, “my company has no direct competitors,” all companies do. Landing new customers will do exactly what is stated here — maintain (worst-case scenario) or, optimally, grow, and expand the business.
How Is User Acquisition Measured?
How much user acquisition costs your company is a key figure to be aware of — as is whether that price is worth it. Two important figures, the customer acquisition cost (CAC) and the customer lifetime value (CLTV), are crucial your marketing budget is and whether the investment you’re making is worth it.
There are three ways to understand the impact of user acquisition on your business:
CAC
This formula takes the total of your sales and marketing expenditures on user acquisition and divides that by the number of new customers you’ve acquired. If you spent $25,000 in the previous quarter and gained 33 new customers, your CAC is $25,000 (sales and marketing costs) ÷ 33 (number of new customers) = $757.58.
Total Sales & Marketing Expenses on User Acquisition of New Customers Acquired = CAC
CLTV
This calculation allows you to figure out how much revenue you can overseas data expect from new customers over their association with your company. The formula is:
Average Sale x Number of Repeat Sale
The CLTV should be a bigger number than the CAC — at least the type of protein found three times (or more) larger. If your CLTV is lower than that, it means it isn’t worth it to bring these new customers on board. (Or that your pricing structure needs to be agent email list looked at.)
Churn Rate