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2. Ideal Acquisition Cost Model
• Viral effects
• Inbound Marketing
• Free or Freemium
• Open Source
• Free Trials
• Touch less Conversion
• Inside Sales
• Channels
• Strategic Partnerships
• High Chrum
Rates
• Low Customer
• Satisfaction
Cost To Acquire A
Customer (CAC)
Monetization
(Ltv)
• Field Sales
• Outbound
marketing
• Recurring
Revenue
• Scalable Pricing
• Cross
Sell/Upsell
• Product Line
expansion
• Lead Gen for 3rd
parties
The Balancing ActA Well Balanced Business Model
2
This slide reflects the
ideal cost model for
Customer Acquisition
and the factors which
can help in bringing
out the balance
4. Cost Estimate to acquire a Customer
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Freemium01
No Touch
Self Service02
Light touch
Inside Sales03
High touch
Inside Sales04 Field Sales05
Field Sales
With SE’s06
Rough Estimates of Cost of Customer Acquisition (CAC)
$0
- $1001
$50
- $20002
$1,000
- $2,00003
$3,000
- $8,00004
$25,000
- $75,00005
$25,000
- $200,00006
4
5. 5
CustomerAcquisition
Cost(1of2)
Flow Qty. Conversion %
Total Paid Web Visitors 10,000
Trials 500 5%
Customers 50 10%
SEM Marketing Spend $ 5,000
Total Headcount Costs $ 49,000
Cost of Customer Acquisition
Without headcount costs $ 100.00
With headcount costs $ 1,090.00
Input Variables
10,000 $ 0.50 5% 10% 3 $ 16,500
Total
Web Visitors
SEM Cost
Per Click
Conversion
to Trial %
Trial
Conversion %
No. of Sales &
Marketing Staff
Cost Per
Employee Per Month
These are some of
the factors
undertaken to
calculate the
Customer Acquisition
Cost, you can modify
them as per your
requirements
6. Customer Acquisition Cost (2 Of 2)
Cost of Customer
Acquisition
$ 109,700
Team
Composition
1
On Target
Earnings
$ 230,000
Salary
Cost
$ 230,000
Salary +
Overhead
$ 310,500
Total Team
Cost
$ 560,250
Avg. Team
Failure Rate
25%
Adjusted
Team Cost
$ 747,000
No. of
Marketing
People
0.5
Average cost
per person
$ 200,000
Marketing
Programs
Spend
$ 150,000
Total Marketing
Cost
$ 350,000
Total Sales &
Marketing
Spend
$1,097,000
No. of Deals
Per Team Per
Year
100
6
These are some of
the factors
undertaken to
calculate the
Customer Acquisition
Cost, you can modify
them as per your
requirements
7. Customer Acquisition Cost by Channel (1 of 2) 7
$8.50
$20.00
$50.00
$60.00
$70.00
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00
Search
Yellow Pages
Online
Email
Direct Mail
Mention your top
customer
acquisition
channels along
with their
respective cost
8. Customer Acquisition Cost by Channel (2 of 2) 8
Total
Customers
2,000 Customers
$17 CPANew
Customers
1600
$20 CPA
Repeat
Customers
400
$5 CPA
Paid
Channels
800
$35 CPA
Free
Channels
800
$5 CPA
SEM
600
$35 CPA
Affiliate
100
$35 CPA
Offline
Ads
100
$45 CPA
Direct
to Site
400
$1 CPA
SEO 400
$9 CPA
SEM
50
$35 CPA
Affiliate
30
$25 CPA
Offline
Ads
20
$45 CPA
Paid
Channels
100
$35 CPA
Free
Channels
300
$4 CPA
Direct
to Site
100
$1 CPA
CRM
100
$3 CPA
SEO
100
$9 CPA
Customer Acquisition costs for last 3 months
12. Column Chart
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017
• Product 01 • Product 02
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“Edit Data”.
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automatically based on data. Just left click on it and select
“Edit Data”.
12
13. Pie Chart
40%
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70%
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80%
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13
18. 18
Our
Vision
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19. Charily Doe
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Mary Clark
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Emily Parker
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Peter Smith
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Our Team 19
Graphic Designer Web DesignerMarketing HeadFinancial Advisor
20. Our Goal 20
01 02 03
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21. About Us
21
Target Audiences
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Preferred By Many
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Valued Clients
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22. Comparison
70%
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Male
50%
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Female
22
23. Financial 23
40%
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24. Dashboard 24
20% 50% 70%
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MediumLow High
25. 25
-Thomas Edison
Time is really the
only capital that any
human being has, and
the only thing he can’t
afford to lose.
Quotes
26. Bulb Or Idea
01
0304
0205
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27. Puzzle
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01
02
03
04
27