I am trying to figure out the best approach to accurately measure customer acquisition cost (CAC) performances for multiple acquisition types when I only have one total spend. To better visualize:
May (Base Month)
- Spend = 50,000 dollars
- Phone Leads = 14
- Chat Leads = 164
- Phone CAC = 50,000/14 = 3,571.43 CAC
- Chat CAC = 50,000/150 = 333.33
- Total CAC = 50,000/164 = 304.87
June (Current Month)
- Spend = 60,000 dollars
- Phone Leads = 48
- Chat Leads = 133
- Phone CAC = 60,000/48 = 1,250.00 CAC
- Chat CAC = 60,000/133 = 451.13 CAC
- Total CAC = 50,000/164 = 331.49
Unfortunately calculating individual CAC's for Phone and Chat is ineffective and not a good representation of how each acquisition type is performing. As a result I was using the Weighted Laspeyres Index formula to get a better picture of what is happening Month over month, but using Leads and CAC as my two variables. Are these valid variables to use?
Resulting formula example:
Phone Price Index (May) = (Base CAC * Base Phone Leads)/(Base CAC * Base Phone Leads)
= (3,571.43 * 14)/(3,571.43 * 14)
= 1.0 (Price relative)
= 1.0 * 100
= 100 (Price Index)
Phone Price Index (June) = (Current CAC * Base Phone Leads)/(Base CAC * Base Phone Leads)
= (1,250 * 48)/(3,571.43 * 14)
= 0.4 (Price relative)
= 0.4 *100
= 35 (Price Index)
Is this the correct formula as well?
