Customer Acquisition Cost And Customer Lifetime Value

Step-by-step guide to calculate customer acquisition cost and lifetime value with real business examples, and more!

What you'll learn
Customer acquisition cost (CAC) and its calculation
Customer lifetime value (CLV/LTV): basic and advanced level
Past customer lifetime value (PCV) and its comparison with CLV
Step-by-step calculation of CLV
Acquisition campaign payback period
Marketing campaign ROMI
Discount rate and net present value (NPV)
Business case practice with capstone project
Requirements
Only simple math
Prior knowledge about marketing is NOT needed
Description
Marketing & customer analytics have become increasingly important and popular in business. Keywords such as customer acquisition cost (CAC) and customer lifetime value (CLV/LTV) appear in nearly every job description of a role titled business analyst or data scientist. While most courses focus on the technical requirements such as machine learning or coding skills, few has devoted effort to teach an equally if not more important ability : business acumen.I am Dr. Alan Zhang. I was formerly a marketing professor and am currently a data scientist of marketing analytics. Through this course, I want to prepare you with the basic knowledge on two important customer analytics concepts: CAC and CLV. From this course, you will get all of these to help you become ready for your current or future jobs:high-quality instructorextensive level of lecturesstep-by-step guidancepractice opportunitiesfinal capstone project

Overview

Section 1: Customer Acquisition Cost: Concept, Formula, Case Study

Lecture 1 Are you spending too much on customer acquisition campaign?

Lecture 2 Customer Acquisition Cost - Concept & Formula

Lecture 3 Case Study: what is the total customer acquisition cost?

Lecture 4 Case Study: set up the CAC calculation framework

Lecture 5 Case Study: finish up calculating CAC

Lecture 6 Case Study: is customer acquisition cost worth it?

Lecture 7 Customer value: is it one time or over the lifetime?

Section 2: Customer Lifetime Value: Definitions, Components, Calculations

Lecture 8 Customer Lifetime Value (CLV): An Introduction

Lecture 9 Customer lifetime value is a forward-looking metric

Lecture 10 Components of Customer Lifetime Value: Part 1

Lecture 11 Components of Customer Lifetime Value: Part 2

Lecture 12 How to easily calculate Customer Lifetime Value?

Section 3: Customer Lifetime Value Calculation: Case Study

Lecture 13 Case study review: what is the CLV of the newly acquired customers?

Lecture 14 Calculating CLV for each period

Lecture 15 Finishing up the calculation of total CLV and average CLV per customer

Lecture 16 An alternative method of CLV calculation

Lecture 17 Tracking the ROMI and payback period of acquisition campaign

Section 4: Customer Lifetime Value Calculation : Advanced Level

Lecture 18 Understanding net present value (NPV) and discount rate

Lecture 19 How to calculate present value with discounting?

Lecture 20 What is the "golden" formula to calculate CLV at the advanced level?

Lecture 21 Basic and Advanced CLV: how do they differ in the cupcake store case?

Section 5: Capstone project: CAC and CLV of SaaS company

Lecture 22 Project overview: what you need to know?

Lecture 23 Capstone project answers: Method #1

Lecture 24 Capstone project answers: Method #2

Section 6: Course Summary: what have you achieved?

Lecture 25 A roadmap of what you have accomplished

Lecture 26 Directions to become a customer lifecycle expert

Small-business owners who wish to be more successful by understanding the value of their customers,Entrepreneurs who are struggling with surviving or ready to move up to the next level,Marketing or product managers who want to optimize their marketing channel ROI,Data analyst, scientist, engineer who desire to develop more business sense and strategic thinking,Business analyst whose role involves understanding and tracking customer behavior and performance,Anyone who is interested in business or customer lifecycle analysis