DumbCMO

What does a customer cost me?

Work out what one customer costs you (CAC), what they’re worth (LTV), and how long until they pay you back.

Ads, agency, tools. All of it.
First-time buyers, not repeat ones.
What one order is worth.
Once a year? Every month?
Guess. Be a bit pessimistic.
What you keep from each order after costs.

Your answer

One new customer costs you
$38
One customer pays you, in total
$240
…of which you keep
$96
Paid back after
9.4 months

Thin. You make money on each customer, but not much. Raise prices, get people to come back more often, or spend less per new customer before you spend more. Keep-to-cost ratio: 2.6 to 1.

In marketing-speak, the first number is your Customer acquisition cost: what you spent on marketing to get one new paying customer. and the total is your Lifetime value: what one customer pays you, in total, for as long as they stay.. A common rule of thumb is to keep at least three times what a customer cost you. Nothing leaves your browser.

Next: should you run ads yet? Or look up any other term in the Dumb Dictionary.