Blended CAC is £240. The next customer costs £960.

Average acquisition cost describes the customers you already won, but every budget decision is priced at the margin, and the two numbers diverge fastest exactly when you scale.

By Steve 5 min read
Abstract bridge artwork for Blended CAC is £240. The next customer costs £960.

Most acquisition reporting answers a question nobody is actually asking. Total marketing spend divided by total new customers gives a blended cost per acquisition, it trends nicely on a dashboard, and it is compared against lifetime value to produce a comfortable ratio. The problem is that no decision in the business depends on that number. The decision on the table is almost always: should the next £20,000 go into this channel? That question is priced at the margin, and the marginal cost of a customer can be several times the…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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