Metrics book

Cost per new customer

cost_per_new_customer

Description

The Marketing spend for a period, divided by the New customers won in it. All spend counts, even spend aimed at old customers.

When to use

Use it to see what growth costs. Set it next to Customer lifetime value to see if winning customers pays. To judge one channel, use Profit on ad spend.

Formula

Marketing spend divided by New customers.

Category
Marketing

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