What indicators are related to the CAC? When we talk about CAC,

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What indicators are related to the CAC? When we talk about CAC,

There is another metric in digital marketing that we cannot put aside. We are talking about LTV or lifetime value , an indicator that refers to the net value that a customer generates during their lifetime, and why is this indicator so important? Let’s see it next. To calculate it you have to take into account the following data: The lifetime of the client. Purchase recurrence ratio. Average net spending of the customer. Example “LTV = Average Expense x Acquisition Recurrence x Customer Life” That is, you take the average expense of your client at the time of purchase belize cell phone , you multiply it by the recurrence of acquisition (products bought during a period of time), and finally, you multiply it all by the life time (number of months or years) that the customer was buying your products. This indicator will be of great help to you to know precisely if your CAC has generated profitability or not . Because, it may be the case that you have attracted a new customer for € 20, but he has only made a € 10 purchase in your E-commerce.

In such a case, the bottom line would be that you made a loss. However, it is possible that the same customer makes multiple purchases over the course of a year, something like 12 purchases of € 10 and then not continue shopping. That’s when the LTV would kick in and our formula would be as follows: LTV = € 10 x12x1year = € 120 / year That is, we had a CAC of € 20, with a first purchase of only € 10, but our LTV was € 120, so your company obtained a good profit margin with that single client, but in the long term . So, if the same thing happens with your other 100 clients, captured on Facebook, we would be talking about a profit of € 12,000 / year. But what if we tried it with € 10,000 of investment in digital marketing and 500 new clients, following the same pattern, your company’s profits would amount to € 60,000. And all this can be even better, since we are placing a not so optimistic case where the client does not spend too much. You could perfectly win € 500,000. It all depends on your investment budget and that you know how to do things. In case you want to have the help of the best specialists in the entire Spanish market, just send us a message at this very moment to assist you.

This procedure is carried out in the same way with different amounts: € 100, € 1,000, € 5,000, € 20,000, € 100,000 … You can obtain immediate profits in relation to your CAC in the first purchase, or have them later in the long term with the LTV . Other related indicators There are another series of important indicators for your company when it comes to marketing , they are the following: MCC = Total cost of the marketing campaign (the amount invested for the acquisition). S = Cost of the software dedicated to sales and marketing . W = Gross salaries for marketing and sales associates. Conclution If you want to know more about digital marketing Taiwan Database and all the benefits it has for you, go to our blog or related articles, you will find a lot of interesting information with which you will enrich your knowledge and learn much more. In case you are a company that wants to try the best digital marketing techniques, or carry out good campaigns through digital sales channels, in order to know your CAC, contact us at this time to help you and make the results of your company shoot.

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