271 KPI: How to Calculate Your CAC (Customer Acquisition Cost)
My Digital Farmer | Marketing Strategies for Farmers
Release Date: 07/17/2024
My Digital Farmer | Marketing Strategies for Farmers
September 4, 2024 Today's podcast guest Sue Miller shares her inspiring story of how she built a thriving farm business in rural Tennessee from growing simple hydroponic butterhead lettuce on her windowsill to serving hundreds of families in her community through CSA, farmers market, wholesale, and online store. And it all happened in just 5 years. We cover marketing principles like: finding your unique niche identifying and leading with your gateway product cultivating vendor relationships to offer more products listening to your customer to build out your business sharing your...
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How much do you spend to ACQUIRE a customer? This is a powerful question you should know the answer to. In this episode, we dive into one of the KPI's (key performance indicators) in your farm business, namely Customer Acquisition Cost (CAC). I explore its significance in evaluating the efficiency of your marketing strategies and the overall health of your business. We'll break down the key components that contribute to CAC, including marketing and advertising expenses, salaries, commissions, and other direct costs. Then I'll walk through my CAC for both my CSA and my online store customer....
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July 3, 2024 Recently, I've been looking for ways to increase our weekly online store revenue in our store. I noticed that we had a LOT of 1 or 2 item purchases last year. Those are quite frankly a real drag to pack. The amount of time it takes me to print the pack slip, pack the order, pay for the bag it goes into, and hand deliver it -- begs the question, "Am I making any money on this?" I penciled out the numbers and realized I'm barely breaking even with those orders. I needed to make a certain "average order value" to make it worth it to run online sales. So I decided to raise the...
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info_outlineHow much do you spend to ACQUIRE a customer?
This is a powerful question you should know the answer to.
In this episode, we dive into one of the KPI's (key performance indicators) in your farm business, namely Customer Acquisition Cost (CAC). I explore its significance in evaluating the efficiency of your marketing strategies and the overall health of your business. We'll break down the key components that contribute to CAC, including marketing and advertising expenses, salaries, commissions, and other direct costs. Then I'll walk through my CAC for both my CSA and my online store customer. This was an eye-opening process for me!
Your homework is to calcuate your CAC for your different key product streams. I'm hoping this will empower you to make data-driven decisions and enhance your marketing effectiveness!
This podcast was sponsored by Local Line, my preferred e-commerce platform for farmers. Are you looking for a new solution for your farm? I can't recommend it enough. Easy to use inventory management, great customer service, continuous improvement, and a culture dedicated to equipping farmers with marketing expertise, Local Line should definitely be one of the e-commerce solutions you consider as you switch. Local Line is offering a free premium feature for free for one year on top of your paid subscription. Claim your discount by signing up for a Local Line account today and using the coupon code: MDF2024. Head to my special affiliate link to get started: www.mydigitalfarmer.com/localline
Some of the resources mentioned in this episode:
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