2. 1. Customer Acquisition Cost (CAC)
• Sales and Marketing Cost/New Customers
• Sales and Marketing = Ad and program spend,
salaries, bonuses and overheads
• You want to have a low CAC
• If it increases then theres a problem with
sales/marketing efficiency
• [S+M]/NC
4. 3. Ratio of Customer Lifetime Value to
CAC
• Lifetime Value:CAC
• Lifetime Value = [Revenue – Gross Margin]/Churn
Rate
• Churn Rate = 25% is a life of 4 years
• Value from each existing customer compared to
acquiring a new customer
• Higher the ratio the better the more ROI
• LTV:CAC
5. 4. Time To Payback CAC
• CAC/Margin Adjusted Revenue
• MAR = Average pay of customer per month
• Annual of monthly fee you want it be <12
months.
• Les time means the sooner you can get money
off new customers
• CAC/MAR
6. 5. Marketing originated Customer %
• New Customers as the result of a marketing
lead/New customers in a month
• Shows what new business is driven by
marketing.
• Shows the impact of marketing
• NCM/TNC
7. 6. Marketing Influenced Customer %
• Total new customers that interacted with
marketing/total new customers
• All new customers marketing interacted with
while they were leads
• Indicates how effective marketing is at
generating new leads
• TNCM/TNC