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Step 2 of 10 in this module#912 of 1,000

2. What to Include in "Total Marketing & Sales Spend" for CAC

Part 10 • Customer Acquisition Cost (CAC) and Lifetime Value (LTV)

When calculating CAC, be comprehensive with your "Total Marketing & Sales Spend." This includes:

<ul> <li><strong>Advertising Spend:</strong> Money spent on Meta Ads, TikTok Ads, YouTube Ads, Google Ads.</li> <li><strong>Tools & Software:</strong> Monthly subscription costs for your CRM, email service provider, Smartlink platform (prorated by customer acquisition).</li> <li><strong>Personnel Costs:</strong> If you hire a social media manager or ad agency, a portion of their salary/fee should be included.</li> <li><strong>Creative Costs:</strong> Costs associated with producing ad creatives (e.g., hiring a videographer for a short ad).</li> </ul> The goal is to capture all direct expenses related to bringing a new customer into your business.

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In this module: Customer Acquisition Cost (CAC) and Lifetime Value (LTV)10 steps
  1. 1Customer Acquisition Cost (CAC): The Price of a New Fan
  2. 2What to Include in "Total Marketing & Sales Spend" for CAC
  3. 3Lifetime Value (LTV): The Total Worth of a Fan
  4. 4Why LTV is Not Just Purchase Value
  5. 5Calculating the LTV:CAC Ratio (The North Star)
  6. 6The Strategic Importance of the 3:1 Ratio
  7. 7How to Improve Your CAC
  8. 8How to Improve Your LTV
  9. 9The Data-Driven Approach: Continual Monitoring
  10. 10Your Actionable LTV and CAC Strategy