Question
Factoring in with headcount costs in customer acquisition means including the costs associated with hiring, training, and paying employees who are involved in the customer acquisition process. This could include salespeople, marketing staff, and customer service representatives. On the other hand, factoring without headcount costs means calculating the customer acquisition cost without considering these employee-related expenses. This approach focuses solely on direct costs such as advertising, promotional activities, and any other expenses directly related to acquiring new customers.
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To determine the customer acquisition cost of sales and marketing activities, a cost sheet can be used to estimate the total CPA across multiple acquisition channels. Enter input variables alongside their respective quantity and rate of conversion, then factor in with and without headcount costs.(Slide 19)
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