Max acquisition cost simulator
A simple tool for defining the target acquisition cost of your sales appointments.
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Key indicators
Sales generated by a customer over its lifetime
Average margin rate measures the average expected return on average customers
The appointment conversion rate measures the percentage of people who carry out a specific action (a purchase, for example) after an initial contact with the company.
FAQ : Calculate the Max acquisition cost of a lead
What is the maximum cost of acquiring a lead?
The maximum acquisition cost of a lead is the amount you must not exceed to acquire a new prospect. It takes into account the Customer Lifetime Value, the margin you want to keep on your sales and the closing rate of your sales team.
Why calculate the maximum cost of acquiring a lead?
Calculating your maximum acquisition cost facilitates sales and marketing decisions. It enables you to choose the most profitable acquisition channel according to its conversion rate and investment.
What is the formula for calculating the Max acquisition cost of a lead?
CMAXL = CMAXCustomer x Txdeconv
To calculate the maximum acquisition cost of a lead, we first need to calculate the maximum acquisition cost of a customer.
CMAXClient = Customer Lifetime Valueust * Average margin rate
Then multiply by the average conversion rate from appointment to customer.
For example, a company that sells its customers an annual subscription for €1,000 and wishes to maintain a 50% margin will have a CMAXClient of €500.
If we assume that a salesperson from the same company signs 1 customer out of 2, then the maximum lead acquisition cost will be €250.
CMAXL = (1000*0.5)*0.5
CMAXL = €250
