Understanding Customer Acquisition Costs 
Rob Moffat

Hi Rob, I think your theory could be perfect in a perfect world ☺. And I think if one company will follow this theory will grow dramatically their business value. Your graphics is very great, when I saw it I thought that could be perfect to show my result to the client through the agency where I’m working. so, my first doubts is about the attribution, because the first “must have” is have only one source of data for the online activities, do you think? The second is how to give a correct CPA to the “free channel”; which kind of cost do you think we have to include? Anyway, your method to show the entire acquisition cost is very clear and understandable to every stakeholders (I hope..). Last but not the least, talking about the growth, I think that the best way to figure out why adding more “pressure” to the paid channel is the law of diminishing returns, but in the digital age we can optimize and reach the “Pareto efficiency” on all the acquisition channels avoiding the cannibalization between free and paid channel.

Thanks for your contribute!

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