What a new customer costs, and why you should know

Editorial poster titled “What a new customer costs and why you should know” with Avila Ops blue, red, and yellow shapes.

Photo: Avila Ops Tecnologia

A new customer costs everything you spent on attraction and conversion during a period, divided by the number of customers acquired during that period. This is customer acquisition cost, explained in detail in the basic guide: What is customer acquisition cost?. The next step is calculating it by channel, deciding what to do when the number is high, and using the cost to correct pricing.

Knowing this changes three decisions: where to spend the next real, how much to charge, and how much retaining an existing customer is worth. Without the number, all three become opinions.

How do you calculate cost by channel?

Average cost hides what matters. A referral customer costs almost nothing; an ad-generated customer may cost R$ 200. Mixing the two produces a number you cannot use to decide. Separate them.

  1. List the channels bringing customers: referrals, Google, organic Instagram, advertising, physical store, partners.
  2. For each channel, total six months of spending. Ads are easy: the amount is in Ads Manager. Organic Instagram costs the paid time of whoever posts, or the agency fee. Referrals cost any gifts or discounts you give referrers. Google costs what you spent on the website and content over those six months.
  3. Count new customers from each channel. If you do not know their source, that is the first problem to solve; CRM with a source field solves it.
  4. Divide spending by customers, channel by channel.

At a custom furniture store: advertising, R$ 6,000 over six months, 20 customers, R$ 300 each. Google, website cost of R$ 480 over six months, 15 customers, R$ 32 each. Referrals, R$ 900 in discounts, 18 customers, R$ 50 each. Organic Instagram, R$ 3,600 in agency fees, six customers, R$ 600 each. The store thought Instagram was its main channel.

What should you do when the cost is high?

A high cost alone is not a problem. A high cost for customers who contribute little is a problem. Compare it with the margin customers generate, not with other channels’ costs.

If an ad-generated customer costs R$ 300 and buys R$ 8,000 in furniture at a 35% margin, after taxes, product costs, and their share of fixed costs, they contribute R$ 2,800. Worthwhile. If an Instagram customer costs R$ 600 and the agency attracts people who only request quotes, it is not worthwhile, however attractive the profile looks.

Three paths for high costs that do not pay off:

  • Reduce the cost: narrower audiences, better creative, a higher-converting page. This works when the channel brings the right people in the wrong quantity.
  • Increase customer contribution: bundles, plans, additional services, recurring billing. The Pix Automático guide shows how to turn one sale into several: https://avilaops.com/guias/como-usar-pix-automatico-para-cobranca-recorrente/.
  • Cut the channel and reallocate. Painful when it is the owner’s favorite channel. Necessary when the previous two have been tried.

Why does customer acquisition cost change your price?

Because pricing must cover the cost of bringing customers in, not only product cost. Many small businesses calculate price as cost plus margin and forget that each customer cost R$ 150 to acquire. When advertising expands, that R$ 150 becomes R$ 250, and the seemingly good margin disappears.

The correct calculation for a one-time sale: minimum price equals product cost, plus taxes and fees, plus delivery cost, plus the share of fixed costs allocated to each sale, plus acquisition cost, plus your desired margin. For recurring customers, acquisition cost is spread across subsequent purchases, allowing a more competitive first-purchase price. That is why businesses with returning customers can advertise more cheaply than those selling once.

What to do now

Calculate cost by channel using the last six months’ data, even if half consists of estimates. Beside it, put the margin contributed by customers from each channel. The channel where cost exceeds margin is your first decision. Five numbers that fit on one screen, updated automatically: avilaops.com/sistema-para-pequenas-empresas or contact us on WhatsApp: wa.me/5517997811471.

Frequently asked questions

How much does acquiring a new customer cost?

It depends on the channel and business. Referrals and Google searches usually cost less; ads and agencies usually cost more. The right number is yours: channel spending divided by customers it brought. Compare it with the margin those customers contribute, not a market average.

Is retaining a customer cheaper than acquiring a new one?

In almost every business, yes, because retention has no advertising or persuasion cost. But retention is not automatic: it requires remembering customers, offering the next step, and making repeat purchases easy. Businesses that do not do this pay acquisition costs again on every sale.

How do you reduce customer acquisition cost?

First, know where each customer comes from. Then move money from expensive channels that do not pay off to inexpensive channels being ignored. Finally, bring customers back: when a customer buys twice, acquisition cost per sale falls by half.

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