Channel Customer Acquisition Cost
Break out customer acquisition cost by channel and across all channels.
Description
Channel CAC compares attributed spend with attributed new customers.
Channel CAC compares attributed spend with attributed new customers.1
Break out customer acquisition cost by channel and across all channels.
When to use Channel Customer Acquisition Cost
Use this tool to break out customer acquisition cost by channel and across all channels.
Prepare consistently defined customer counts, durations, costs or forecast assumptions. Keep aligned records and monetary amounts on a common period and currency basis.
How to use Channel Customer Acquisition Cost and understand its results
- Prepare consistently defined customer counts, durations, costs or forecast assumptions. Keep aligned records and monetary amounts on a common period and currency basis.
- Enter channelNames, channelSpend, newCustomers using the field table and calculation rules, then run the tool.
- Read channelCac, blendedCac, acquiredCustomers. The explanation below defines the units, signs, ordering and any flags or placeholder values.
- If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.
| Input field | Meaning | Value type; see rules below | Requirement |
|---|---|---|---|
| channelNames | Channel names | list of string | Required |
| channelSpend | Channel spend | list of number | Required |
| newCustomers | New customers | list of number | Required |
Enter aligned nonempty unique raw channel IDs, nonnegative spend and positive integer customers; return CACs, blended value and total customers.
CAC=spend/customers; blended=sum(spend)/sum(customers) Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.
| Output field | Meaning | Value type |
|---|---|---|
| channelCac | Channel cac | list of number |
| blendedCac | Blended cac | number |
| acquiredCustomers | Acquired customers | number |
{
"input": {
"channelNames": [
"paid-search",
"referrals"
],
"channelSpend": [
100,
100
],
"newCustomers": [
10,
10
]
},
"output": {
"channelCac": [
10,
10
],
"blendedCac": 10,
"acquiredCustomers": 20
}
}Limitations and assumptions
No attribution, lifetime value or customer double-count prevention is supplied.
Numeric inputs, where present, must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Lists are limited to 100,000 entries; the rules above may require smaller limits. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.
Alternative or Complementary methods
Use Viral Referral K Factor: Estimate referrals generated per active user from invitations and conversion. For a complementary task, use Activation Cohort Comparison: Compare activation rates between two consistently defined signup cohorts.
References
-
Channel Customer Acquisition Cost — tool.io
Similar or alternative tools
- Viral Referral K Factor
Estimate referrals generated per active user from invitations and conversion.
- Activation Cohort Comparison
Compare activation rates between two consistently defined signup cohorts.