Customer Acquisitions Cost
The cost of customer acquisition. On the one hand it is considered simple - we take all marketing expenses for acquisition of potential clients in a cohort and divide it by the number of clients in the cohort. Or, which is the same thing, divide CPA by C1.
It's important to realize that this metric doesn't have an unambiguous definition in terms of what to include in the attraction budget. For example, there is an open question about the cost of retaining a client in the cohort and the cost of re-engagement if the current client has already interacted repeatedly with ads aimed at attracting new clients
To solve this problem, I suggest using the Customer Lifetime Cost (CLTC) metric.
Unit economics & financial modeling in practice
50€/year
less than €1/week · billed annuallyPlus: theme customization, font settings, article printing and image zoom.
Subscribe to get access.
If you're already a customer, just log in.
we do not store your email, only the encrypted hash, which increases the security of your email.