customer-accusition-costBy understanding how much it costs to acquire a customer(s), you understand how to properly match expenses to revenue growth opportunities.

 

The first of three reasons you should care about your Revenue Growth Maturity Model level is the impact on Customer Acquisition Cost (CAC). The reductions in Customer Acquisition Cost are significant. Given that 35% of revenue is allocated across product, marketing and sales, a reduction in CAC of 30% drops more than 10% to the bottom line.

 

About the Tool

Once an organization is assessed against the Revenue Growth Maturity Model, they need to know how they stack up against the competition. With this tool, CAC is quantified then compared to other companies at the same level in the Revenue Growth Maturity Model.

 

core-strategic-areasUsing the Tool

First, understand the percent of revenue that is invested on core strategic areas:

 

  1. Product % of Revenue Invested
  2. Marketing % of Revenue Invested
  3. Sales % of Revenue Invested

 

Second, understand your CAC as it is related to your placement on the Revenue Growth Maturity Model. Insights are provided into how CAC improves over time by moving from one level up to the next.