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CAC
Ratio
Ideal Acquisition Cost Model
Cost to Acquire a
Customer (CAC)
Monetization
(LTV)
A Well Balanced Business Model
Cost to Acquire a
Customer (CAC)
Monetization
(LTV)
▪ Viral effects
▪ Inbound Marketing
▪ Free or Freemium
▪ Open Source
▪ Free Trials
▪ Touch less
Conversion
▪ Inside Sales
▪ Channels
▪ Strategic
Partnerships
▪ High Chrum
Rates
▪ Low Customer
▪ Satisfaction
▪ Field
Sales
▪ Outbound
marketing
▪ Recurring Revenue
▪ Scalable Pricing
▪ Cross Sell/Upsell
▪ Product Line
expansion
▪ Lead Gen for 3rd
parties
This slide reflects the
ideal cost model for
Customer Acquisition
and the factors which
can help in bringing out
the balance
2
CustomerAcquisition
Cost
Vis itors
Leads
Cus tom ers
X20 X8
X1000
X2,000
$2.00
Cost per customer is $250.00
3
Cost Estimate to acquire a Customer
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audience's attention.
Freemium
01
No Touch
Self Service
02
Light touch
Inside Sales
03
High touch Inside
Sales
04
Field Sales
05
Field Sales With
SE’s
06
Rough Est imat e s of Cost of Cust ome r Acquisit ion ( CAC)
$0
- $10
01
$50
- $200
02
$1,000
- $2,000
03
$3,000
- $8,000
04
$25,000
- $75,000
05
$25,000
- $200,000
06
4
Input Variables
10,000 $ 0.50 5% 10% 3 $ 16,500
Total
Web Visitors
SEM Cost
Per Click
Conversion
to Trial %
Trial
Conversion %
No. of Sales &
Marketing Staff
Cost Per
Employee Per Month
Flow Qty. Conversion %
Total Paid Web Visitors 10,000
Trials 500 5%
Customers 50 10%
SEM Marketing Spend $ 5,000
Total Headcount Costs $ 49,000
Cost of Customer Acquisition
Without headcount costs $ 100.00
With headcount costs $ 1,090.00
Customer
Acquisition
Cost (1 of 2)
These are some of the
factors undertaken to
calculate the Customer
Acquisition Cost, you
can modify them as per
your requirements
5
Customer Acquisition Cost (2 Of 2)
Avg. Team
Failure Rate
25%
Team
Composition
1
On Target
Earnings
$ 230,000
Salary Cost
$ 230,000
Salary +
Overhead
$ 310,500
Total Team
Cost
$ 560,250
Adjusted
Team Cost
$ 747,000
No. of
Marketing
People
0.5
Average cost
per person
$ 200,000
Marketing
Programs
Spend
$ 150,000
Total Marketing
Cost
$ 350,000
Total Sales &
Marketing
Spend
$1,097,000
No. of Deals
Per Team Per
Year
100
Cost of Customer
Acquisition
$ 109,700 These are some of the
factors undertaken to
calculate the Customer
Acquisition Cost, you
can modify them as per
your requirements
6
Customer Acquisition Cost by Channel (1 of 2)
$8.50
$20.00
$50.00
$60.00
$70.00
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
Search Yellow Pages Online Email Direct Mail
Mention your top
customer acquisition
channels along with
their respective cost
7
Customer Acquisition Cost by Channel (2 of 2)
Total
Customers
2,000 Customers
$17 CPANew
Customers
1600
$20 CPA
Repeat
Customers
400
$5 CPA
Paid
Channels
800
$35 CPA
Free
Channels
800
$5 CPA
SEM
600
$35 CPA
Affiliate
100
$35 CPA
Offline
Ads
100
$45 CPA
Direct
to Site
400
$1 CPA
SEO 400
$9 CPA
SEM
50
$35 CPA
Affiliate
30
$25 CPA
Offline
Ads
20
$45 CPA
Paid
Channels
100
$35 CPA
Free
Channels
300
$4 CPA
Direct
to Site
100
$1 CPA
CRM
100
$3 CPA
SEO
100
$9 CPA
Customer Acquisition costs for last 3 months
8
Additional
Slides
9
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Vision
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attention.
Mission
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attention.
Goal
Vision & Mission
10
This is a representative image,
and should be replaced by your
own image. Just right click and
replace image.
This is a representative image,
and should be replaced by your
own image. Just right click and
replace image.
This slide is 100% editable. Adapt it to your
needs and capture your audience's attention.
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needs and capture your audience's attention.
Our
Team
11
Our Main Goal
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attention.
12
About Us
Target Audiences
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your needs and capture your
audience's attention.
Preferred by Many
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your needs and capture your
audience's attention.
Values Client
This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
13
Comparison
$65%
2015
2016
$75%
2018
$94%
2016
This slide is 100% editable. Adapt it
to your needs and capture your
audience's attention.
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to your needs and capture your
audience's attention.
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to your needs and capture your
audience's attention.
14
Financial
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capture your audience's
attention.
75%
Maximum
This slide is 100% editable.
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capture your audience's
attention.
52%
Medium
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capture your audience's
attention.
36%
Minimum
15
0
100
50
Low
Medium
High
Dashboard
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and capture your audience's attention.
▪ This slide is 100% editable. Adapt it to your needs
and capture your audience's attention.
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and capture your audience's attention.
16
Mark Zuckerberg
People Don’t Care About
What You Say, They
Care About What You
Build.
Quotes
17
Blub With Idea
01
02
03
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capture your audience’s attention.
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capture your audience’s attention.
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capture your audience’s attention.
18
Puzzle
01 02
03 04
05
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your needs and capture your
audience's attention.
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to your needs and capture your
audience's attention.
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your needs and capture your
audience's attention.
This slide is 100% editable. Adapt it
to your needs and capture your
audience's attention.
This slide is 100% editable. Adapt it to
your needs and capture your
audience's attention.
19
Coffee Break
Let’s Have a Break, We'll Come
Back After 15 Minutes
20
Charts &
Graph
21
4
6
8
10
0
2
4
6
8
10
12
2015 2016 2017 2018
Bar Graph
▪ This slide is 100% editable. Adapt it to your
needs and capture your audience's
attention.
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needs and capture your audience's
attention.
22
Line Chart
0
10
20
30
40
50
60
70
80
90
100
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Profit(InThousands)
92%
80%
▪ Product 1 ▪ Product 2
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
23
Donut Pie Chart
40%
20%
30%
10%
This slide is 100% editable. Adapt it to
your needs and capture your audience's
attention.
This slide is 100% editable. Adapt it to
your needs and capture your audience's
attention.
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your needs and capture your audience's
attention.
This slide is 100% editable. Adapt it to
your needs and capture your audience's
attention.
24
Clustered Bar
0 10 20 30 40 50 60 70 80 90 100
Q1
Q2
Q3
Q4
Unit Count
▪ Product 1 ▪ Product 2 ▪ Product 3
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
25
Scatter Chart
20
60
30
40
75
55
80
90
10
20
30
40
50
60
70
80
90
100
10 20 30 40 50
Profit(InSales)
In Percentage
▪ Product 1 ▪ Product 2
This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”.
26
Thank You
Address
# street number,
city, state
Email Address:
emailaddress@123.com
Contact
Numbers:
0123456789
27

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CAC Ratio PowerPoint Presentation Slides

  • 2. Ideal Acquisition Cost Model Cost to Acquire a Customer (CAC) Monetization (LTV) A Well Balanced Business Model Cost to Acquire a Customer (CAC) Monetization (LTV) ▪ Viral effects ▪ Inbound Marketing ▪ Free or Freemium ▪ Open Source ▪ Free Trials ▪ Touch less Conversion ▪ Inside Sales ▪ Channels ▪ Strategic Partnerships ▪ High Chrum Rates ▪ Low Customer ▪ Satisfaction ▪ Field Sales ▪ Outbound marketing ▪ Recurring Revenue ▪ Scalable Pricing ▪ Cross Sell/Upsell ▪ Product Line expansion ▪ Lead Gen for 3rd parties This slide reflects the ideal cost model for Customer Acquisition and the factors which can help in bringing out the balance 2
  • 3. CustomerAcquisition Cost Vis itors Leads Cus tom ers X20 X8 X1000 X2,000 $2.00 Cost per customer is $250.00 3
  • 4. Cost Estimate to acquire a Customer This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Freemium 01 No Touch Self Service 02 Light touch Inside Sales 03 High touch Inside Sales 04 Field Sales 05 Field Sales With SE’s 06 Rough Est imat e s of Cost of Cust ome r Acquisit ion ( CAC) $0 - $10 01 $50 - $200 02 $1,000 - $2,000 03 $3,000 - $8,000 04 $25,000 - $75,000 05 $25,000 - $200,000 06 4
  • 5. Input Variables 10,000 $ 0.50 5% 10% 3 $ 16,500 Total Web Visitors SEM Cost Per Click Conversion to Trial % Trial Conversion % No. of Sales & Marketing Staff Cost Per Employee Per Month Flow Qty. Conversion % Total Paid Web Visitors 10,000 Trials 500 5% Customers 50 10% SEM Marketing Spend $ 5,000 Total Headcount Costs $ 49,000 Cost of Customer Acquisition Without headcount costs $ 100.00 With headcount costs $ 1,090.00 Customer Acquisition Cost (1 of 2) These are some of the factors undertaken to calculate the Customer Acquisition Cost, you can modify them as per your requirements 5
  • 6. Customer Acquisition Cost (2 Of 2) Avg. Team Failure Rate 25% Team Composition 1 On Target Earnings $ 230,000 Salary Cost $ 230,000 Salary + Overhead $ 310,500 Total Team Cost $ 560,250 Adjusted Team Cost $ 747,000 No. of Marketing People 0.5 Average cost per person $ 200,000 Marketing Programs Spend $ 150,000 Total Marketing Cost $ 350,000 Total Sales & Marketing Spend $1,097,000 No. of Deals Per Team Per Year 100 Cost of Customer Acquisition $ 109,700 These are some of the factors undertaken to calculate the Customer Acquisition Cost, you can modify them as per your requirements 6
  • 7. Customer Acquisition Cost by Channel (1 of 2) $8.50 $20.00 $50.00 $60.00 $70.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Search Yellow Pages Online Email Direct Mail Mention your top customer acquisition channels along with their respective cost 7
  • 8. Customer Acquisition Cost by Channel (2 of 2) Total Customers 2,000 Customers $17 CPANew Customers 1600 $20 CPA Repeat Customers 400 $5 CPA Paid Channels 800 $35 CPA Free Channels 800 $5 CPA SEM 600 $35 CPA Affiliate 100 $35 CPA Offline Ads 100 $45 CPA Direct to Site 400 $1 CPA SEO 400 $9 CPA SEM 50 $35 CPA Affiliate 30 $25 CPA Offline Ads 20 $45 CPA Paid Channels 100 $35 CPA Free Channels 300 $4 CPA Direct to Site 100 $1 CPA CRM 100 $3 CPA SEO 100 $9 CPA Customer Acquisition costs for last 3 months 8
  • 10. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Vision This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mission This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Goal Vision & Mission 10
  • 11. This is a representative image, and should be replaced by your own image. Just right click and replace image. This is a representative image, and should be replaced by your own image. Just right click and replace image. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Our Team 11
  • 12. Our Main Goal ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 12
  • 13. About Us Target Audiences This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Preferred by Many This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Values Client This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 13
  • 14. Comparison $65% 2015 2016 $75% 2018 $94% 2016 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 14
  • 15. Financial This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 75% Maximum This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 52% Medium This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 36% Minimum 15
  • 16. 0 100 50 Low Medium High Dashboard ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 16
  • 17. Mark Zuckerberg People Don’t Care About What You Say, They Care About What You Build. Quotes 17
  • 18. Blub With Idea 01 02 03 This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. This slide is 100% editable. Adapt it to your needs and capture your audience’s attention. 18
  • 19. Puzzle 01 02 03 04 05 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 19
  • 20. Coffee Break Let’s Have a Break, We'll Come Back After 15 Minutes 20
  • 22. 4 6 8 10 0 2 4 6 8 10 12 2015 2016 2017 2018 Bar Graph ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. ▪ This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 22
  • 23. Line Chart 0 10 20 30 40 50 60 70 80 90 100 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Profit(InThousands) 92% 80% ▪ Product 1 ▪ Product 2 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 23
  • 24. Donut Pie Chart 40% 20% 30% 10% This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 24
  • 25. Clustered Bar 0 10 20 30 40 50 60 70 80 90 100 Q1 Q2 Q3 Q4 Unit Count ▪ Product 1 ▪ Product 2 ▪ Product 3 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 25
  • 26. Scatter Chart 20 60 30 40 75 55 80 90 10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 Profit(InSales) In Percentage ▪ Product 1 ▪ Product 2 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. 26
  • 27. Thank You Address # street number, city, state Email Address: emailaddress@123.com Contact Numbers: 0123456789 27