A customer's cac is divided by the total revenue they bring in in a year (their monthly subscription rate multiplied by ). Example: a client that costs $ and who contributes b2c email list $ annually. Cac payback = (cac) / (annual contribution) = . years = . months customer group. Divide sales and marketing spend from the previous quarter (or year) by the difference in b2c email list subscription revenue between quarter and quarter . You can then divide that number by to get the number of years it will take recover the original b2c email list cash outflow. Cac payback = , / , = . quarters / = . years how to break down the variables used to calculate the payback period?
Sales and b2c email list marketing expenses for quarter also include all costs to acquire new customers in quarter . The difference in subscription revenue between the two quarters is the amount of new revenue that acquired customers added in the second quarter. Example: total sales and marketing expense (including marketing campaigns and team salaries for both areas) for quarter plus expenses for quarter two is $,. Quarter revenue is $, and b2c email list quarter revenue is $,. The difference between earnings is $,. Cac payback = , / , = . quarters = . years to determine how much of your sales and marketing spend is recouped in a year, reverse the equation: the difference in subscription revenue between quarters ($,) divided by the previous quarter's sales and marketing expense ($,). Once the result is found, it is multiplied by to find the expense that will be reimbursed in one year.