Product metrics.part 12. Acquisition Metrics

 

Acquisition Metrics

1. Customer Acquisition Cost (CAC)

Definition: Cost to acquire one paying customer.
Formula:
CAC = Total Marketing & Sales Spend / Number of New Customers

Examples:

  • D2C Brand: ₹5L spend, 1,000 customers →
    ₹5L / 1,000 = ₹500 CAC
  • SaaS Tool: ₹2L spend, 400 signups → ₹500 CAC.
  • EdTech Platform: ₹10L spend, 2,000 enrollments → ₹500 CAC.

2. CAC Payback Period

Definition: Time to recover the CAC from customer revenue.
Formula:
Payback = CAC / Monthly Revenue per Customer

Examples:

  • Cloud Storage: CAC ₹1,200, Monthly Revenue ₹300 →
    = 4 months
  • Streaming Platform: CAC ₹600, ₹200/month → 3 months.
  • Fitness App: CAC ₹1,000, ₹250/month → 4 months.

3. Traffic-to-Signup Conversion Rate

Definition: % of website visitors who sign up.
Formula:
= (Signups / Website Visitors) × 100

Examples:

  • CRM SaaS: 500 signups / 10,000 visitors →
    = 5%
  • Diet App: 2,000 signups / 50,000 visitors → 4%
  • Job Portal: 1,200 signups / 20,000 visitors → 6%

4. Signup-to-Customer Conversion Rate

Definition: % of signups that convert to paying customers.
Formula:
= (Paying Customers / Total Signups) × 100

Examples:

  • Design Software: 200 of 1,000 →
    = 20%
  • Language App: 400 of 2,000 free users upgrade → 20%
  • Healthcare App: 500 of 5,000 → 10%

5. Cost per Lead (CPL)

Definition: Marketing spend per qualified lead.
Formula:
CPL = Ad Spend / Number of Leads

Examples:

  • Insurance App: ₹3L for 1,000 leads →
    ₹3L / 1,000 = ₹300 CPL
  • Freemium SaaS: ₹50K on ads, 250 leads → ₹200 CPL.
  • Online Course: ₹2L for 800 leads → ₹250 CPL.

6. Referral Rate

Definition: % of new customers who were referred.
Formula:
= (Referred Customers / Total Customers) × 100

Examples:

  • Mobile Wallet: 2,000 of 10,000 users →
    = 20%
  • Language Platform: 1,500 of 5,000 new users via referral → 30%.
  • Online Grocer: 600 of 3,000 customers → 20%.

7. Viral Coefficient

Definition: How many new users one user brings in.
Formula:
Viral Coefficient = Avg. Invites × Conversion Rate

Examples:

  • Referral App: 3 invites/user × 30% →
    = 0.9
  • Free Tool: 4 invites/user × 25% = 1.0
  • Gaming App: 2 invites × 40% = 0.8


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