To calculate your customer acquisition cost, divide your total sales and marketing spend (including staff) by the total number of new customers you acquired over a given period of time. For example, if you spend €100,000 over a month and acquire 100 new customers, your CAC would be €1,000.
Customer acquisition should be the primary goal for startups. CAC rates help businesses manage their growth and accurately assess the value of their acquisition process.
5.- Months to recover CAC
Key SaaS Metrics
This metric helps determine how long after you acquire a customer, you will recover your total CAC. In other words, months to recover CAC gives you an idea of how quickly a customer starts generating ROI for your business. It’s key that this number decreases over time as your business grows.
To calculate this metric, divide CAC by monthly recurring revenue (MRR) and your gross margin (gross revenue – cost of sales):
Months to recover CAC = CAC / MRR x MB (in %)
6.- LTV:CAC ratio
This is one of the top SaaS metrics and shows the lifetime value of your customers and the total cost you spend to acquire them, in one metric. This metric shows the health of your marketing program, so you can invest in programs that are working well or change campaigns that aren’t.
Finding your LTV:CAC ratio is easy. Simply compare your CLV and CAC. In general, a healthy business should have a CLV that is at least three times higher than its CAC.
7.- Average income per client
This one is pretty straightforward. It's the average revenue you've already received from your customers. Once you've got your churn rate under control and have a reliable way to acquire customers, the keys to increasing the revenue you're receiving are upselling and cross-selling.
An upsell moves a customer to a more expensive version of your product. country code philippines mobile When a user decides to upgrade from a basic plan to a more professional one, that's when an upsell occurs.
Cross-sells are additional features that you sell with your products. They can be extra functionalities or extra services that you offer with your base product. And they are optional.
Annual plans are another way to increase average revenue per customer, as they lock customers into a longer billing cycle. The goal is to create systems that consistently increase the revenue you receive from customers, and this metric will tell you whether or not you’re achieving that.
8.- Average Ticket
Average ticket is one of the main SaaS metrics because it is the average amount that a customer spends buying your products during a certain period. The formula would be:
Average Ticket = Total Billing / Active Clients
. This number is usually increased when upselling and cross-selling increase. It is an important value for calculating other key metrics.
All these metrics would be meaningless without a good Digital Marketing strategy that helps you obtain leads and retain them. Only then will you be able to improve your sales. You can start with a good email marketing campaign. Use our MDirector email marketing software and it will be really easy for you.