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CAC= (Marketing+Sales Cost)/# of new customers acquired
However, FB is a network-focused app that runs on friends or connected users. There is a high chance that from a group of 10 people 6 use FB, then there is a high chance that the other 4 will eventually start using FB dude to their friends.
There is no data to know the marketing and sales expense of FB to acquire new users
Let's assume,
Sales and marketing guys expenses: $10,000
PR expenses: $5,000
Ads on other platforms: $20,000
Variable cost: $5,000 (New trend)
Thus total cost: $40,000
If new customers-
Using Paid Marketing: 1000
CAC: $40/customer
There is no way to understand if the acquired users were acquired organically due to advocacy or paid marketing.
Explanation:
Paid Marketing Flow:
Impressions ->CTR->Landing Page->Creating Account
10,000->8,000->5000->1000
For organic users, it would be
Landing Page->Creating Account
2000->500
The best thing that can be done is to have different user journeys for each medium to understand if the new users are coming to the website organically or using paid marketing.
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