The CAC is calculated by dividing the total of your marketing expenses (advertising, promotions, lead generation commissions) over a period by the number of new customers acquired during that same period.
500€ of Facebook ads + 200€ of flyers = 700€. If this brought you 70 new clients, your CAC is 10€.
Compare the CAC to the LTV (Lifetime Value), which is the net profit a customer will generate throughout their lifetime with you. If a customer generates €5 profit per order and orders 10 times, their LTV is €50. A CAC of €10 is then very profitable (ratio 1:5).
On platforms (UberEats, Deliveroo), the commission is an acquisition cost. If you pay a 30% commission on an order for 20€, your acquisition cost for that order is 6€. This is high, which is why it’s important to convert these customers to your direct channels.
The cheapest client is the one who returns. Customer loyalty costs 5 to 7 times less than acquisition. Don’t neglect your existing customers in pursuit of new ones.
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