Calculating Customer Acquisition Costs

Do you know how much it costs to acquire each new customer via your website?

Use this calculator to find out.

Websites are often a significant cost to companies and yet their performance is rarely measured. Your website provides you with an opportunity to acquire new customers in a measurable and cost effective way.

To achieve this, you first need to know what it costs you to acquire each new customer via the website today. Once you know this you will then know whether these new customers are profitable. Obviously if it costs $100 to acquire a customer to your website who only spends $40 during their lifetime then you are losing money.

In order to ensure that the website is positively contributing to the company's bottom line it is recommended that you examine the cost of customer acquisition as a key performance indicator of your website.

To calculate your cost you need to know:

New customers per month

These are the new customers who have either purchased directly from your website or who became a qualified sales lead via your website or who visited your website and then purchased products or services from your physical outlets.

Website Development Costs

This is the total cost to develop your website as well as major modifications since it was implemented.

Estimated life of the website

How long do you think that this website will be useful to your company before it requires a major overhaul. This figure should be in months.

Monthly Promotion Costs

How much does your company spend on promotions or advertisements that include the website address. Make sure that you include all your online and offline advertisements and promotions.

Monthly Maintenance Costs

How much does your company spend running and maintaining the website including:

• Staffing costs to maintain the website, handle enquiries, etc.
• Hosting costs, ISP fees, bandwidth, etc
• Other fixed costs

If you do not know the answers to these questions, Panalysis can help. Our support plan services can assist you to know how your site is performing and how it can be improved.

PS
Download our free eBook - Getting Results from Your Website - to find out more about improving sales from your website.

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