ST.

XAVIER’S COLLEGE OF MANAGEMENT AND

TECHONOLOGY
Aashiyana digha road,Patna-80001,Bihar
DEPARTMENT-BBA(IB)
COURSE-SERVICE MARKETING

TOPIC
( CALCULATION OF ACQUISITION COST)

Name-SHUBHAM KUMAR PASWAN

Roll No.36
Under The Guidance Of:MR.JOEL D’CRUZE
CONTENT
• INTRODUCTION
• WHAT IS CUSTOMER LIFETIME VALUE?
• HOW TO CALCULATE CUSTOMER LIFETIME VALUE?
• HOW TO CALCULATE ACQUISITION COST
• HOW TO USE CUSTOMER LIFETIME VALUE
ACQUISITION COST TO MAKE MARKETING DECISIONS

2
INTRODUCTION

This presentation will explore the best way to calculate

acquisition cost, both in terms of accuracy and efciency. It
will consider a variety of methods and tools, as well as their
advantages and disadvantages.

3
What is customer lifetime value
4

Customer life time value ( C LV ) measures the protability of

a customer by looking at the total value of their life time as a
customer. It considers both revenue generated as well as cost
associated with maintaining and acquiring that customer.
CLV can help businesses in segmenting customers and also
in determining marketing spend.

4
How to calculate customer lifetime value
5

Customer Lifetime value can be calculated with the help of

Acquisition cost, Retention Cost and Customer profits.
Acquisition cost is what it takes to acquire a customer -
advertising, marketing, incentives and salaries associated with
the process, Retention cost is all the cost associated with
keeping the customer, and Customer Profits is the total value
a customer provides for the time they are a customer. Knowing
these 3 cost will help to calculate the CLV.

5
How to calculate acquisition cost
6

Calculating Acquisition Cost Acquisition Cost can be

calculated by adding the services involved in acquiring
customers like campaigns, salaries, marketing, incentive etc
and subtracting any re venues generated during acquisition
process. Calculating acquisition cost give an in sight of the
protability and efficiency of the campaigning process.

6
How to use customer lifetime value and acquisition cost
to make
7 marketing decisions

Achieving Profits with CLV Using Customer Lifetime Value

and Acquisition Cost to make marketing decisions provides a
clearer picture of actual profitability and the ROI of
campaigns. It also helps to strategically allocate budgets and
maximise marginal profits in a cost-effective way

7
8

THANKYOU