period varies by company

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resmin88
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Joined: Tue Dec 03, 2024 6:42 am

period varies by company

Post by resmin88 »

1. Set each item (measurement period, cost, customer breakdown) First, set the "measurement period," "cost," and "customer breakdown." (1) Measurement period The CAC measurement and industry, but it is common to set it for a short period such as one month or three months. However, for SaaS businesses with a business model that recovers costs over the medium to long term, it is also important to measure CAC over the medium to long term, such as six months or a year.

(2) Cost Decide whether to calculate "Organic CAC," "Paid CAC," or "Blended CAC." Then, decide what range of costs to include in calculating CAC. (3) Customer Breakdown The customer decides whether to narrow mozambique email list 150000 contact leads down the routes for calculation, such as natural traffic or advertising traffic. (4) Set a target value The reason for calculating CAC is to understand the profitability of your business. Since the goal is to recover the costs invested in customer acquisition, set a target payback period.

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For example, if you set the payback period to six months, set it so that LTV exceeds CAC within six months. Since the payback period can change significantly depending on social conditions, be sure to periodically review your target investment period, such as to three months or six months. 2. Understand how much you spend on customer acquisition Next, understand the sales and marketing costs you spent to acquire those customers. Organic CAC: Customers who came in through organic search or customers who were referred by existing customers Paid CAC: Customers acquired through web or SNS advertising, or customers acquired through promotional campaigns Blended CAC: Customers who have a combined Organic CAC and Paid CAC 3.
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