Comments on: Cost of Customer Acquisition - What Is It? http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/ Tracking the Internet Evolution Wed, 08 Oct 2008 03:37:42 +0000 http://wordpress.org/?v=MU hourly 1 By: Jason http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-880922 Jason Fri, 30 May 2008 08:42:42 +0000 http://foundread.com/?p=509#comment-880922 Peter - or anybody - Is there any more info or reference about what would be an expected cost per new paying customer? All I've found were 1998-2001 examples.. Amazon, Priceline. Things are so different now. Peter - or anybody -

Is there any more info or reference about what would be an expected cost per new paying customer? All I’ve found were 1998-2001 examples.. Amazon, Priceline. Things are so different now.

]]> By: entrepreMusings » Cost of Customer Acquisition - What Is It? http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875023 entrepreMusings » Cost of Customer Acquisition - What Is It? Thu, 21 Feb 2008 03:46:07 +0000 http://foundread.com/?p=509#comment-875023 [...] This post was re-published on Found|Read here. Check it out to see additional comments by their readers. Share and Enjoy: These icons link to [...] [...] This post was re-published on Found|Read here. Check it out to see additional comments by their readers. Share and Enjoy: These icons link to [...]

]]> By: Aruni http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875024 Aruni Thu, 21 Feb 2008 03:42:16 +0000 http://foundread.com/?p=509#comment-875024 @Hasan - I agree with you on the calculator and it is amazing that there isn't more out there. @Peter - thanks for the info. I'm curious how the mix would be between a visitor ad-based driven site as well as a conversion site like Amazon. @Warrick - great advice! The problem is finding comparable CCA numbers to check your gut on the reasonableness of the estimates. @Hasan - I agree with you on the calculator and it is amazing that there isn’t more out there.

@Peter - thanks for the info. I’m curious how the mix would be between a visitor ad-based driven site as well as a conversion site like Amazon.

@Warrick - great advice! The problem is finding comparable CCA numbers to check your gut on the reasonableness of the estimates.

]]> By: Warrick http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875028 Warrick Wed, 20 Feb 2008 19:10:52 +0000 http://foundread.com/?p=509#comment-875028 Backing into the number is a perfectly reasonable approach for start-up and the one I have used for the last two companies I helped start. In backing into the number take into account things like customer lifetime (and thus lifetime value), amortization of development and operations infrastructure, direct and indirect marketing and sales (with reasonable conversion rates applied), etc. and, assuming your customer estiamtes are not wildly optimistic you should end up with a number that (gut check) makes sense....BTW - this exercise is also really useful for testing your customer number projections - CCA too high then you need to examine the numbers, too low and you may be being too optimistic! Backing into the number is a perfectly reasonable approach for start-up and the one I have used for the last two companies I helped start. In backing into the number take into account things like customer lifetime (and thus lifetime value), amortization of development and operations infrastructure, direct and indirect marketing and sales (with reasonable conversion rates applied), etc. and, assuming your customer estiamtes are not wildly optimistic you should end up with a number that (gut check) makes sense….BTW - this exercise is also really useful for testing your customer number projections - CCA too high then you need to examine the numbers, too low and you may be being too optimistic!

]]> By: Peter http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875027 Peter Wed, 20 Feb 2008 07:10:39 +0000 http://foundread.com/?p=509#comment-875027 If you need people to sign up and pay for something, an reasonable average to plan for is 10 to 20 US$ per customer - I've heard that from websites in different industries. If you need people to sign up and pay for something, an reasonable average to plan for is 10 to 20 US$ per customer - I’ve heard that from websites in different industries.

]]> By: Hasan Luongo http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875026 Hasan Luongo Wed, 20 Feb 2008 03:31:20 +0000 http://foundread.com/?p=509#comment-875026 this would be good little calculator tool to have and i'm surprised there is not better info on the subject. I recently was searching for the same data and didn't find much. BTW: I didn't find much value in the online calculator link above - but its better than nothing. this would be good little calculator tool to have and i’m surprised there is not better info on the subject. I recently was searching for the same data and didn’t find much.

BTW: I didn’t find much value in the online calculator link above - but its better than nothing.

]]> By: Yaacov http://gigaom.com/2008/02/19/cost-of-customer-acquisition-what-is-it/#comment-875025 Yaacov Tue, 19 Feb 2008 21:16:31 +0000 http://foundread.com/?p=509#comment-875025 Um, just sign up for a CPA network like commission junction and linkshare. Um, just sign up for a CPA network like commission junction and linkshare.

]]>