Investments to be considered in the calculation
The sum of investments should consider only the expenses directly involved in customer acquisition, which generally involves the Marketing and Sales areas. It does not consider, for example, the costs with the administrative area, SAC and product development.
So what should go into that sum? Be transparent with yourself, include everything that is involved in your outreach, relationship and sales strategy:
Team salaries
Sales commissions
Training of collaborators
Acquisition of tools
Software subscription
Buying ads
Participation in events
Press advice
Printed materials
Trips
Telephone contacts
Etc.
Regarding the number of clients, the same logic applies: only those directly acquired through chinese europe phone number list investments in Marketing and Sales are included in the calculation.
For example, a blogger spontaneously mentions your brand and generates a customer for you. This acquisition should not be included in the calculation, since that channel was not in your strategy and you did not dedicate any effort or investment to it.
Period to be considered in the calculation
Additionally, CAC should be analyzed within a specific time period. The frequency can be monthly, bi-monthly, quarterly, half-yearly, yearly, or whatever makes sense for your business.
But keep in mind that if you analyze month by month, you will be able to make improvements more quickly.
And also stay tuned for any variations that may occur.
In a business that is just starting to use Content Marketing , for example, it is natural that the volume of new customers does not compensate for the investments, because the implementation of the strategy is demanding and the return usually comes in the long term. Therefore, the CAC will probably be high.
In a given month, there may also be an off-curve investment, such as the purchase of a new tool. But over time, the CAC value should stabilize and you will have a clearer idea of how your strategies are performing.
Customers to be considered in the calculation
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