Why is it almost every business owner that we ask this following question has no idea what the answer is? I mean it’s a pretty simple question.

How much does it cost you to acquire a customer?

What do you mean by that is the usual response.

I think the main issue is many people make it (working out customer acquisition cost) way more complicated than it needs to actually be.

So today we are going to take this seemingly complicated task, and make it super simple to implement.

Still not sure why this is so important? Well riddle me this…

If you don’t know how much it costs you to bring a customer in to your business how can you know the following?

• How much do you need to budget for your marketing - advertising each week.

• How do you know which advertising platforms you can afford to use to acquire customers?

• How do you know if a product is actually worth carrying. Eg does it cost you to much to bring the customer in that buys it?

• How can you plan for your business’s future growth?

Once you do know your customer acquisition cost then it’s a simple matter of spending that amount of money on an effective marketing strategy to bring them in.

“The mere act of observing an experiment changes the result” Ed Dale