How to Calculate & Maintain a Healthy Customer Acquisition Cost (CAC)
ConversionXL
OCTOBER 8, 2021
Therefore, you need to attribute revenue by their monthly cohorts rather than when they converted in order to properly measure ROAS. A popular way is to include the cost of re-engagement campaigns in the acquisition cost. Here’s how you calculate LTV: [ARPC (Average Revenue Per Customer in a Month) X Gross Margin] / MRR Churn Rate.
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