Beginner’s Guide to Digital Marketing for Southeast Asia — Key Marketing Metrics (part II)

1 — Customer Acquisition Cost (CAC)

1.1 — Intro to CAC

CAC = (Total Cost of Marketing and Sales) / (Number of new customers acquired)

1.2 — How to correctly calculate your CAC

1.3 — How to improve (decrease) your CAC

Paid CAC = (Cost per Click) : (Conversion Rate)

2 — Lifetime Value (LTV)

2.1 — How to calculate your LTV

LTV = (Contribution margin from customer ) x (Average lifespan of customer)
Shopee Q2 2019 financial results
Shopee Q2 2019 revenue in % of their GMV
LTV = $ 1.2 x 12 = $14.4

2.2 — How to improve your LTV

Shopee AOV based on their latest financials
Shopee Q2 2019 revenue in % of their GMV

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RevoU Staff

RevoU Staff

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We train ambitious individuals to prepare them for Indonesia’s most in-demand tech jobs, accelerating the career of anyone showing us the willingness to learn.