GMetrix Formulas

If a company spends $50,000 on marketing and $5,000 on sales and they gain 500 customers. what is their Customer Acquisition Cost?

{hint: CAC= (marketing costs + sales costs) / # of customers }

• 110

• 500

• 300

• 700

Carl's company acquired 15,800 new customers last year. They spent $65,020 in new marketing costs and $25,050 in sales costs. What was Carl's CAC? (round to the nearest cent)

• 5.7
• $5.70

Jean owns a printing company. She had 100 customers at the end of the 3rd quarter, 101 customers at the beginning of the 3rd quarter, and five new customers in the 3rd quarter. What is her customer retention rate for the 3rd quarter?

• 91%

• 96%

• 90%

• 94%

A local restaurant prides itself in having a high number of return customers. To build loyalty, the owner of the restaurant offers a free prime rib dinner (value $20) to any customer who purchases a meal during 10 previous visits. Meals purchased are tracked by stamps on a loyalty card.

At the end of the month, the owner decides to calculate the customer retention cost. The data is the following.

-Number of Customers at start of the month = 100

-Number of customers at the end of the month = 120

-Number of new customers= 40

-Value of free dinners redeemed = $240

What was the customer retention cost?

• $2

• $3

• $12

• $6

Find the selling price of shoes with an original price of $150.00 after a 20% discount.

Find the selling price of a hat with an original price of $28.50 after a 40% discount.

Find the selling price of a calendar with a cost of $4.50 after a 20% markup.

CUSTOMER ACQUSITION COST

• (MARKETING COSTS+SALES COSTS)/NUMBER OF NEW CUSTOMERS

• ASSETS-LIABILITIES

Investors use ______ to determine the cost of acquiring new customers

• new business cost

• new customer cost

• customer acquisition costs

• customer retention cost

What is the formula to calculate the selling price?

• Cost Price x Profit

• Cost Price - Profit

• Cost Price / Profit

• (Cost x Desired Profit Margin)+ Cost