Shark Tank Question

Papa John

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"What is your customer acquisition costs?" -- How do I figure out this number?

Does the cost of reminders cards go into the equation or is that part of customer retention cost?
how do you figure customer retention cost?
 

smastio

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Steve Mastio
John - I love this new thing called google :biggrin:
To compute the cost to acquire a customer, CAC, you would take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period.

I think that acquired is the key word. I may be wrong ( I have been wrong 3 times before) :errf:. You might consider doing two studies. One for the new and one for the existing and just use expenses appropriately.

OH Geez, it just dawned on me - are you out of the country!!!!
 

Papa John

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San Francisco, CA.
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John Stewart
John - I love this new thing called google :biggrin:
To compute the cost to acquire a customer, CAC, you would take your entire cost of sales and marketing over a given period, including salaries and other headcount related expenses, and divide it by the number of customers that you acquired in that period.

I think that acquired is the key word. I may be wrong ( I have been wrong 3 times before) :errf:. You might consider doing two studies. One for the new and one for the existing and just use expenses appropriately.

OH Geez, it just dawned on me - are you out of the country!!!!

So do I add the cost of Fittlebug and Service Monster to my sales/advertising costs?
I would think Reminder card expense and discounts cost wouldn't be in customer Acquisition costs- but customer retention costs.

SO take All advertising expense: yelp, Angie's list, print and web publications and divide that by New customers?

Yes, I'm in Thailand Now;
But Google, And my understanding of the English language still works here-- even If my Brain doesn't work sometimes :very_drunk:
thanks for your help.
 
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smastio

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St. Charles IL
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Steve Mastio
So do I add the cost of Fittlebug and Service Monster to my sales/advertising costs?
I would think Reminder card expense and discounts cost wouldn't be in customer Acquisition costs- but customer retention costs.

SO take All advertising expense: yelp, Angie's list, print and web publications and divide that by New customers?

Yes, I'm in Thailand Now;
But Google, And my understanding of the English language still works here-- even If my Brain doesn't work sometimes :very_drunk:
thanks for your help.
I am not sure but my guess is that Servicemonster and FittleBug might be considered an operational expense. IDK, have another beer, flip a coin and implement :winky:
 

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