Cost of Customer Acquisition(CoCA)

The most important metric together with LTV

Photo by Procsilas Moscas (CC BY 2.0)

CoCA calculation

Divide the total costs associated with acquisition by total new customers, within a specific time period

• Salaries of salespeople (even if it’s you!).

• Above-the-line marketing.

• Online marketing costs (SEM).

• Social Media.

• SEO.

Startup Metrics for Pirates

Acquisition

Activation

Retention

Referral

Revenue

Photo by Joriel Jimenez (CC BY-NC-ND 2,0)

Focus here!

Remember

Your work

• Define your marketing plan.

• Make a marketing and sales budget.

• Calculate CoCA.

• Revise CoCA calculations.

• Revise customer LTV calculations.

• Should you do any changes in your BM?

• Anyway, revise your BM by next week.

• Start working on a Cash-Flow statement (3 years, 1st year monthly)