👨🏽💻 I help e-commerce marketers start & grow their career by teaching what I'm learning in my own journey as an e-commerce marketer scaling 6 figure brands, to 7 figures & beyond. 🚀 Signup below to get my "daily-ish" newsletter that'll help you become a better e-commerce marketer in just 5 minutes a day.
The business that can spend the most to acquire a customer will...
Win.
Ok. Well how much can I spend to acquire a new customer?
I’m not a numbers person by default. I got my start on the creative side of marketing & was scared of diving into the numbers side of marketing for years.
But today, as nerdy as it sounds. I’ve come to love unit economics. It allows me to create marketing strategies without wondering if we’ll be profitable or not.
How much you can spend to acquire a new customer is often referred to as your "target CAC."
Finding your target CAC for your 3 best selling products in your business is key to being able to build a smart marketing strategy that doesn’t just get you new customers. It gets money into your pocket. 💸
Figuring out how much you can spend to acquire a new customer boils down to gross profit minus net target. But, what does that mean? How? I'll show you how while keeping it simple.
UNIT ECONOMICS SIMPLIFIED: If you remember these points about unit economics. You’re golden.
- PRICE: How much you charge your customer for your product.
- COST OF DELIVERY: How much it costs for you to make & ship your product to your customer.
- GROSS PROFIT: The amount of direct revenue when a customer buys, minus the total cost of delivery.
- NET PROFIT: Think of net profit as how much money in your pocket you want left over after cost of delivery. When it comes to net profit, a good starting point is 25% of total revenue.
- CAC TARGET: How much you can spend to acquire a customer after gross & net profits are accounted for.
🎁 FREE GIFT: As a Christmas gift, here’s a link to my entire e-commerce marketing playbook I use when they hire me. Just make a copy to your Google Drive & it's all yours! Merry Christmas & Happy New Year!
Why am I giving this away for FREE? I thought I’d share it with you now because it has a unit economics calculator you can use to plug in your numbers for your products to figure out how much you can spend to acquire a new customer. It's also packed with ton's of other useful tabs if you run, work with or for an e-commerce brand under $1MM in annual revenue.
I use it as a workbook throughout my course. I also use it as when I work 1:1 with e-commerce brands through my done-for-you productized consulting business, Double My e-Commerce.
Joe Chavez
👨🏽💻 I help e-commerce marketers start & grow their career by teaching what I'm learning in my own journey as an e-commerce marketer scaling 6 figure brands, to 7 figures & beyond. 🚀 Signup below to get my "daily-ish" newsletter that'll help you become a better e-commerce marketer in just 5 minutes a day.
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