Variables to calculate the cost of customer acquisition
There are a number of variables that allow the cost of customer acquisition to be calculated so that a company can have a clear understanding of it, and they are as follows
1.- New customers captured monthly (NC); These are the customers who buy directly from your website or the customer who has purchased a product or service after being a user qualified as a lead
2.- Web development costs (CDW); These are the costs charged for the complete development of the website and all major modifications that may have occurred since development began
3.- Estimated life of the website (VEW); Time in months that you think your website will be up and running before it requires a new complete modification
4.- Monthly cost of web promotion (CMPP); The monthly investment made in promotion and advertising of your website, are attributable to all costs both on-line and off-line that are made to attract customers directly or indirectly
5.- Monthly maintenance costs (CMM); How much it costs you to keep the web active, in this case everything related to personnel, connectivity, hosting, etc. is imputed
With these five variables you can calculate your customer acquisition cost
(CDW/ VEW) CMPP CMM
————– = Customer Acquisition Cost
NC
Practical example of customer acquisition cost:
Cost of developing a website: 10,000 €
Estimated life of the website: 12 months
Monthly promotion and advertising costs: 3.000 euros
Monthly maintenance costs (either full or part time): (3 people) 4.000 euros
Number of new customers per month: 30
In this case the cost of customer acquisition will be 261 euros, if in the case that the price of a product is 200 euros/year, in order to amortize the cost of customer acquisition is necessary that the customer is active about 16 months approx, from that moment the customer begins to offer benefit (this would be called Customer Life Cycle Value)