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How To Calculate Customer Acquisition Cost

In an ideal world, your product or service would sell itself. Customers would sing your praises from their rooftops, and you wouldn’t need to budget for marketing. The reality of the situation is that you do need to spend at least some money on customer acquisition if you want to bring in new customers for your small business.That’s why we’ve put together this video, which will show you how to calculate your customer acquisition cost in three easy steps. 1. Determine the time period you’d like to calculate for Narrow the scope of your data to the past month, quarter, or year. This way, you can gain insights about how your customer acquisition cost has increased or decreased over time depending on the methods you used or on purchasing trends. 2. Add up your total marketing and sales expenses Try to be as comprehensive as possible to get the best sense of what you’re spending. 3. Divide your total marketing and sales expenses by customers acquired Divide the total cost of marketing and sales by customers acquired, and you have your CAC. For more resources on customer acquisition, visit GetApp’s resources page: https://www.getapp.com/resources/.