Product metrics. part 6 - Acquisition Metrics


Acquisition Metrics

1. Customer Acquisition Cost (CAC)

Definition: Total cost to acquire one paying customer.
Formula:
CAC = Total Sales + Marketing Costs / Number of New Customers

Examples:

  • SaaS: ₹5,00,000 spent to acquire 1,000 customers →
    = ₹500 per customer
  • Online Grocery: ₹2L spent on ads → 400 conversions → ₹500 CAC.
  • EdTech Platform: ₹1.2L on campaigns → 600 new students → ₹200 CAC.

2. Conversion Rate

Definition: % of leads or visitors who complete a desired action.
Formula:
Conversion Rate = (Conversions / Visitors or Leads) × 100

Examples:

  • Landing Page: 2,000 signups from 10,000 visits →
    = 20%
  • Online Store: 300 purchases from 6,000 visitors → 5%.
  • Loan App: 1,200 approvals from 15,000 applicants → 8%.

3. Lead Velocity Rate (LVR)

Definition: Growth rate of qualified leads month-over-month.
Formula:
LVR = (Leads This Month - Leads Last Month) / Leads Last Month × 100

Examples:

  • B2B SaaS: 1,200 leads this month, 1,000 last month →
    = (1200 - 1000) / 1000 × 100 = 20%
  • Insurance SaaS: 600 vs. 500 last month → 20% LVR.
  • CRM Tool: 1,500 vs. 1,250 → 20% growth.

4. Traffic Sources (Distribution %)

Definition: Breakdown of user traffic by source (organic, paid, referral, direct, etc.)

Examples:

  • E-commerce: 40% Organic, 30% Paid Ads, 20% Direct, 10% Referral.
  • Healthcare Portal: 50% SEO, 25% Google Ads, 15% social, 10% newsletters.
  • Online Bank: 60% organic, 20% brand search, 10% UPI partnerships, 10% influencer traffic.

5. New Customer Count

Definition: Number of new paying customers added during a period.

Examples:

  • EdTech SaaS: 800 new customers in Q1.
  • Cloud Accounting Tool: 150 B2B accounts added in March.
  • D2C Health Supplement: 5,000 first-time buyers this month.

6. Marketing Qualified Leads (MQLs)

Definition: Leads identified by marketing as more likely to convert.
Criteria can include behavior, engagement score, or intent signals.

Examples:

  • B2B SaaS: Downloaded whitepaper + attended webinar = MQL.
  • Insurance Platform: Requested quote + visited 3 policy pages.
  • EdTech CRM: Opened 3+ emails + clicked pricing page.

7. Sales Qualified Leads (SQLs)

Definition: MQLs vetted by sales as ready for a direct pitch.
Higher intent than MQLs.

Examples:

  • B2B CRM: Requested a demo + has budget → passed to sales.
  • SaaS Tool: Firm with 10+ employees, CTO engaged → SQL.
  • Healthcare IT: Hospital admin scheduled onboarding call.

8. Cost per Lead (CPL)

Definition: Average marketing cost to acquire one lead.
Formula:
CPL = Total Marketing Spend / Total Leads Generated

Examples:

  • SaaS: ₹1,00,000 spent → 2,000 leads →
    CPL = ₹50
  • Online Course Ad: ₹20,000 → 400 leads → ₹50 CPL.
  • Loan Aggregator Site: ₹50,000 → 1,000 inquiries → ₹50 CPL.


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