No… not a South African exclamation of frustration.
CAC in this context stands for “Customer Acquisition Cost”.  Another metric that you can determine to take the guess-work out of making decisions.

Simply put, the CAC is calculated by simply dividing all the costs spent on acquiring more customers by the number of customers acquired in the period the money was spent. So if you spent R1,000 on marketing in a month and acquired 100 customers in the same period, your CAC is R10.00.


You guessed it, though.  There are variables that can impact on that straight-forward calculation.  For example, you may have made investments on marketing in a new region or early stage SEO that won’t yield results until a later period.  (That is why it is important to measure how or where a new customer heard about you, so you can get a more accurate measure). For assistance with that, Sonja is an ace at your service.  Call her for an appointment - 083 256-0378


With so many headlines about “overnight successes”, it’s undoubtedly important to attract new customers.  However, it’s important to remember the value of customer retention and customer loyalty.  Especially when considering that it costs six to seven times more to acquire a new customer than it does to retain an existing one.

Get your complimentary CAC template here:  
Google Drive link: https://drive.google.com/file/d/0B3zopj0OTdVLM3VlUWw4UldyLTA/view?usp=sharing
Dropbox link: https://www.dropbox.com/s/xasqjzxblrfw1jh/CAC.xlsx?dl=0 
But remember that your existing customers are more than just figures – repeat customers are the foundation on which profitable businesses are built.

According to New York based big data analysts, SumAll, “25% to 40% of the total revenues of the most stable businesses come from returning customers. Even better, steady customers help businesses weather lean economic times; businesses with 40% repeat customers generated nearly 50% more revenue than similar businesses with only a 10% repeat customers.” 

Here is a great graphic from SumAll with some ideas to retain your existing customers:

EXTRA! EXTRA!  Read all about it.  Watch out for our BONUS blog post on Wednesday.

There are only 46 days till Christmas.  Get in touch with Sonja NOW to make the most of this high-spend period.

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Next week:
How To Select Your Coach