The customer acquisition cost formula is:
Posted: Sun Feb 02, 2025 10:18 am
The customer acquisition funnel is the sequence of steps a prospect goes through to become your customer. It’s the backbone of your entire marketing and sales process.
It can look differently for different companies, industries, product types, and buying processes, but a customer acquisition funnel typically includes these stages:
Awareness: The prospect is aware of the problem they have and searches for explanations and potential solutions
Interest: They make the first touchpoint with your business thanks to your lead generation efforts
Consideration: The lead fully understands their problem and seeks both educational and product-specific content
Evaluation: They’re highly engaged and are considering and comparing options and solutions
Purchase: Last-minute questions, contract signing, and the actual deal close
Customer Acquisition Strategies - Customer Acquisition Funnel from Close
Why is understanding the customer acquisition funnel important? Because, more often than not, leads need to touch every stage before they become customers.
Keep in mind they won’t necessarily move through your sales funnel in a linear fashion. Their first interaction with you (interest) might happen at the same time as their solution comparison (evaluation) because someone they trust recommended your product after they spent months in the topic research (awareness) and product research (consideration) stage.
What is Customer Acquisition Cost (CAC)?
Customer acquisition cost (CAC for short) is a sales uk telegram data metric that determines how much it costs your company to acquire a new customer.
Customer Acquisition Cost = sales costs + marketing costs / # of new customers acquired
Customer Acquisition Strategies - CAC formula from Close
Here’s what CAC might look like for a startup for one quarter based on these KPIs:
Sales costs: $200k
Marketing costs: $150k
New customers won: 1,000
Customer acquisition cost = ($200,000 + $150,000) / 1,000 = $350,000 / 1,000 = $350
There are two approaches you can take to calculate your customer acquisition costs.
It can look differently for different companies, industries, product types, and buying processes, but a customer acquisition funnel typically includes these stages:
Awareness: The prospect is aware of the problem they have and searches for explanations and potential solutions
Interest: They make the first touchpoint with your business thanks to your lead generation efforts
Consideration: The lead fully understands their problem and seeks both educational and product-specific content
Evaluation: They’re highly engaged and are considering and comparing options and solutions
Purchase: Last-minute questions, contract signing, and the actual deal close
Customer Acquisition Strategies - Customer Acquisition Funnel from Close
Why is understanding the customer acquisition funnel important? Because, more often than not, leads need to touch every stage before they become customers.
Keep in mind they won’t necessarily move through your sales funnel in a linear fashion. Their first interaction with you (interest) might happen at the same time as their solution comparison (evaluation) because someone they trust recommended your product after they spent months in the topic research (awareness) and product research (consideration) stage.
What is Customer Acquisition Cost (CAC)?
Customer acquisition cost (CAC for short) is a sales uk telegram data metric that determines how much it costs your company to acquire a new customer.
Customer Acquisition Cost = sales costs + marketing costs / # of new customers acquired
Customer Acquisition Strategies - CAC formula from Close
Here’s what CAC might look like for a startup for one quarter based on these KPIs:
Sales costs: $200k
Marketing costs: $150k
New customers won: 1,000
Customer acquisition cost = ($200,000 + $150,000) / 1,000 = $350,000 / 1,000 = $350
There are two approaches you can take to calculate your customer acquisition costs.