How Do You Calculate User Acquisition Cost
In the simplest interpretation, the user acquisition cost is the ratio of the expense of user acquisition campaigns and the number of users acquired.
However, calculating User Acquisition Cost or Customer Acquisition Cost is not that simple as modern-day marketing involves a number of complexities in terms of attribution of channels, cost models, KPIs, and tools.
How To Customer Acquisition Cost (CAC)
CAC includes the expenses of acquiring the customer as well as the conversion. So, it is the sum of user acquisition cost and sales cost.
Consider the following factors while calculating the CAC:
With all these factors into consideration, the cost of customer acquisition is given as:
To read you about various customer acquisition cost models, such as Cost per Acquisition (CPA), Effective Cost per Thousand Impressions (eCPM), Cost per Click (CPC), Cost per Install (CPI), Cost per Engagement (CPE), Cost per Sale (CPS), and more, you can refer to this blog on User Acquisition Cost Model As Per Performance Indicator.