Episode 666

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Published on:

28th Jan 2025

Part 1 - The 5 Step Formula to Determine Your nCAC

In part one of this two-part episode, Ralph and Lauren are talking about New Customer Acquisition Cost (NCAC). Sure, the mention of math might send some of you running for the hills, but hold on—this is the math that matters. Ralph compares finding your NCAC to searching for buried treasure, while Lauren reminds us that chasing vanity metrics like ROAS alone is as useful as an umbrella in a hurricane.

Learn why NCAC is the North Star of scaling a business, how to measure it effectively, and what tools can make the process manageable. Ad platforms love to boast about their results but your bottom line—and how much it costs to add a new customer to it—never lies.

As Lauren puts it: “Fake numbers might make you feel good, but they won’t pay your bills.”

Chapters:

  • 00:00:00 – Math That Matters: The Secret Ingredient for Scaling
  • 00:00:24 – NCAC: The Metric That’s Cooler Than ROAS
  • 00:01:42 – Why Calculating NCAC Feels Like Cracking a Cold Case
  • 00:02:42 – Scaling Secrets: Unlocking Business Growth with Math
  • 00:03:47 – The Real Cost of New Customers (No, It’s Not What You Think)
  • 00:06:10 – Lifetime Value: Measuring Love from Your Best Customers
  • 00:09:28 – Practical Math: When Numbers Lead to Dollars
  • 00:12:45 – Refunds, Returns & Regrets: Subtracting the Pain Points
  • 00:15:30 – Hidden Costs Unveiled: Shipping, Storage & Surprises
  • 00:18:05 – COGS: Decoding Cost of Goods Sold
  • 00:20:50 – Gross Profit: The Halfway Mark to True Success
  • 00:23:15 – Profit Checkpoint: COGS, Gross Profit, and What They Mean for You
  • 00:34:10 – A Special Perk for PT Fans: Wrap-Up & Surprise

LINKS AND RESOURCES:

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Mentioned in this episode:

AppSumo - 13% off with code traffic13

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About the Podcast

Perpetual Traffic
Helping marketing directors and CMOs master paid traffic and conversions!
Perpetual Traffic is a twice weekly podcast that shares cutting-edge strategies on acquiring leads and sales for your business. The show is produced by Tier 11 and hosted by Ralph Burns and Lauren Petrullo. Traffic is the act of putting your product, service, or message in front of your target audience…it’s the act of acquiring customers online while also building goodwill, and is the lifeline of any business. So, whether you’re a media buyer yet to create your first Facebook or Instagram ad, a Director of Marketing or CMO managing a team of marketing specialists, or a CEO growing your business on your own, you’ll discover actionable strategies that can be applied today. Perpetual Traffic combines the traffic strategies developed at Tier 11 with the real-life agency experience of the hosts. Listen to real stories of business owners and marketing executives just like you how they overcame struggles with digital marketing and online advertising. Learn how to make Facebook advertising, Instagram advertising, YouTube advertising, Twitter advertising, Google AdWords advertising, LinkedIn advertising, (and more) work for your business.

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Kasim Aslam