It may also be interesting to find out how much your company spends on acquiring a lead until it becomes a customer. In this case, we use CAC .
There are several ways to perform the calculation, however, we can simplify it in the following equation: CAC = Total Marketing and Sales Expenses / Total Customers Acquired
In total expenses, include:
total invested in marketing campaigns (online and offline);
salaries of professionals associated with marketing strategies architects email list (including leaflet deliverers) and salaries of professionals involved in the sales department;
cost of software used (e-commerce platforms, results analysis and automation tools);
professional services such as marketing consultants and designers;
investment in commercial tools, such as calls, commercial CRM, etc.;
any other related costs not covered above.
The result will show whether the expense of obtaining a customer is beneficial to the company's accounts.
Average ticket
With the average ticket, you will find out how much your consumers have spent on purchases. To do this, use the following formula: Average ticket = Total sold / number of sales
If you notice that people are not buying as much as you would like, use on-site strategies to optimize your customers' consumption. While cross-selling encourages the purchase of products that complement the one already purchased, with up-selling, you will give suggestions so that the consumer can exchange their product for a higher-value one.
Lifetime value
This metric is important for assessing how much old consumers are worth within their consumption journey.
If the results show that your company is losing many customers, you should invest in strategies to retain them, because in this way, the amount invested to obtain the consumer is thrown away.
Many companies spend a lot of money to achieve conversion, but even the sales themselves don't cover the costs. Therefore, it's important to increase the amount and/or the number of times each customer buys from your business. This way, you'll increase your profits and need less effort to attract new customers.
To achieve better results in your campaigns, you need to understand your audience, the market itself and the tools used to advertise your brand on the internet. However, this is not always easy.
For this reason, look for an agency that can show you all the paths to follow, has experience and can help you with performance marketing.
Want to learn more about performance marketing? Download the Definitive Performance Marketing Manual right now and improve your company's results. We're waiting for you!