Cost per Order

Acornia · 27th Feb 2015, 06:19 AM

Interested in what people are getting on a cost per acquisition basis, then adjusted for lifetime value of a customer.

redyellowgreensquare · 27th Feb 2015, 10:23 AM

Need a bit more information, I think.

What do you mean by 'what people are getting on a cost per aquisition basis'?

Acornia · 27th Feb 2015, 10:49 AM

This might help How to Calculate Cost of Customer Acquisition (CAC) in Ecommerce. Interested to know what other retailers are getting on a cost per order and customer lifetime value basis.

savidge4 · 27th Feb 2015, 12:03 PM

Originally Posted by Acornia

This might help How to Calculate Cost of Customer Acquisition (CAC) in Ecommerce. Interested to know what other retailers are getting on a cost per order and customer lifetime value basis.

Personally my CAC diminishes DAILY. In almost 99% of my commerce projects I use SEO methods to attract new customers. Yes there is expense ( My time ) but over the not so long run, the investment is a diminishing one.

As an example I have a 20 page website I started in Sept 2014. I have a total of 60 hours in development. I have hardly touched it in the past 3 months, and it is producing over $1000 a month in amazon revenue.

My web design business is obviously a bit different. I use both online and offline methods. My CAC there is close to $100.

There are simply way to many factors to figure out what an average would be. it depends on the type of business you have. It depends on what the expected life cycle of a customer is. It depends on what actions you are taking for retention and referral ( these will keep your CAC lower btw ).

So to blanket ask.. "hey how does your CAC compare to mine?" is kinda a loaded question.

CreativeWest · 2nd Mar 2015, 07:17 AM

For us it's pretty uniform, $3 and on lifetime value $0.50, same levels as Amazon, but we do work with an incubator and companies who takes startups to enterprises, so it's not really a fair comparison. It's only loaded if you have a high cost, if low it's very simple and transfers across almost all product sectors.

charby5770 · 6th Mar 2015, 09:47 AM

Wouldn't this be niche specific?

What are you looking to accomplish so we can help you?

nexxterra · 7th Mar 2015, 09:18 AM

Cost per acquisition is more of a "variable" expense than a "formula"
While some may get their customers with little or no money, the cost of getting a new client or sale should be tied to your product and your goals.
This cost can be broken down into smaller denominations, like, cost of customer, $3, adsense 77 cents, bannerX, 49 cents, etc, this way you know that the client may cost $3 to land, but when deciding what to spend $$ on, you can study what part of this $3 does the most work.

27th Feb 2015, 06:19 AM	#1
Acornia Active Warrior Join Date: 2014 Posts: 46 Thanks: 1 Thanked 6 Times in 5 Posts	Cost per Order Share on: Interested in what people are getting on a cost per acquisition basis, then adjusted for lifetime value of a customer.

27th Feb 2015, 10:23 AM	#2
redyellowgreensquare Warrior Member Join Date: 2015 Posts: 22 Thanks: 0 Thanked 2 Times in 2 Posts	Re: Cost per Order Share on: Need a bit more information, I think. What do you mean by 'what people are getting on a cost per aquisition basis'?

27th Feb 2015, 10:49 AM	#3
Acornia Active Warrior Join Date: 2014 Posts: 46 Thanks: 1 Thanked 6 Times in 5 Posts	Re: Cost per Order Share on: This might help How to Calculate Cost of Customer Acquisition (CAC) in Ecommerce. Interested to know what other retailers are getting on a cost per order and customer lifetime value basis.

2nd Mar 2015, 07:17 AM	#5
CreativeWest Active Warrior Join Date: 2015 Posts: 67 Thanks: 1 Thanked 12 Times in 11 Posts	Re: Cost per Order Share on: For us it's pretty uniform, $3 and on lifetime value $0.50, same levels as Amazon, but we do work with an incubator and companies who takes startups to enterprises, so it's not really a fair comparison. It's only loaded if you have a high cost, if low it's very simple and transfers across almost all product sectors.

6th Mar 2015, 09:47 AM	#6
charby5770 Warrior Member Join Date: 2012 Posts: 26 Thanks: 17 Thanked 3 Times in 3 Posts	Re: Cost per Order Share on: Wouldn't this be niche specific? What are you looking to accomplish so we can help you?
	Earn 100% commissions on monthly subscribers!!!

7th Mar 2015, 09:18 AM	#7
nexxterra Warrior Member Join Date: 2012 Location: Miami Beach Posts: 23 Thanks: 0 Thanked 6 Times in 5 Posts	Re: Cost per Order Share on: Cost per acquisition is more of a "variable" expense than a "formula" While some may get their customers with little or no money, the cost of getting a new client or sale should be tied to your product and your goals. This cost can be broken down into smaller denominations, like, cost of customer, $3, adsense 77 cents, bannerX, 49 cents, etc, this way you know that the client may cost $3 to land, but when deciding what to spend $$ on, you can study what part of this $3 does the most work.
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