The cost of attracting a client is one of the important indicators in marketing. Using this data, you can calculate the average cost of attracting 1 client. Based on the data received, you can send more or less advertising budget to certain advertising channels.
The cost of the client is calculated quite easily. For example, you've placed an ad on Google and set up performance tracking. For advertising this ad you paid $100 and received 100 clicks on your website ($1 per click). Of these 100 potential customers you bought 1 person (became your customer). You need to divide the amount of money spent on advertising by the number of customers. In this example, $100/1 client = attracting one client will cost $100.
Moreover, different advertising channels can show different cost of attracting customers. To find out the price of the client using a particular advertising platform, it is necessary to keep statistics. You can use 2 sales channels one will bring you customers for $1 and you will spend 90% of your advertising budget there, and the second channel, which will bring customers for $0.1 and you will spend 10% of the budget there. The point is to find the most profitable advertising channels with a large amount of traffic.
