How does it work?

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There is no practical difficulty in calculating the acquisition cost, however, it is necessary to carry out some prior work in order to collect all the information necessary for the calculation. First, it is important to understand that the company will need to monitor and capture data from all stages of the sales funnel, including when the purchase is made.

There is other information required for CAC and denmark mobile database will talk about it later, however, here, we will highlight that it is important to have recorded the number of new customers acquired and how much each stage of the funnel costs.

Another thing is in relation to time, as it is not a permanent type of metric. Therefore, in addition to being necessary at a certain frequency as new actions are implemented, it also needs to be done over a period of time. It can be monthly, half-yearly, or annually; it all depends on the business.

What investments should be considered?
The costs assessed are those that are directly linked to customer acquisition. Two areas are essential when we talk about them: sales and marketing. Expenses that belong to other areas, such as administrative or product development, are not necessary for CAC. Therefore, some examples of calculated costs are:

staff salary;
trainings;
tools;
purchasing ads;
software subscription;
trips.
And everything else related to the product's marketing strategy.

How to calculate CAC?
Now that we understand what is needed, let's get to the practical side of things. It's not very difficult. Calculating the acquisition cost is basically the division of all investments made to attract consumers by the number of customers acquired in a certain period. Let's illustrate this better with an example.