The Additional Marketing Spend ($) is a way to add additional funds to your Customer Acquisition Cost by product or subscription and capture additional new customers over your normal CAC % spend. These additional funds can be added by month for specific business reasons (e.g., additional $’s for an event to capture new customers such as a product launch). You can customize it by product and subscription.
By adding additional marketing $ to CAC you are effectively increasing the number of new customers that you plan on capturing for that specific time period.
Also, this can be used when your marketing & sales strategy is:
- Scenario #1:
A controlled launch where you are not yet promoting the product monthly. For example, a business may only want to capture a specific number of customers in a specific time period – 10 customers in March – due to product availability or a controlled launch.2. Scenario #2:
Limited customer acquisition due to the nature of the business. For example, a business may be selling a specific subscription offering but it is sold as a direct sales method using one-to-one meetings. In this case, the company uses Additional Marketing Spend to record the number of sales they expect to close over a period of time and keeps CAC% to zero.
If your business is similar to either one of these above scenarios, you would set Recurved Scheduled Adjustments by product or subscriptions as follows:
- CAC $ = Record your CAC by Month
- CAC % = Input CAC % as 0% for all months
This means no revenue from the previous month will be spent in the current month to capture new customers on a monthly basis)
- Additional Marketing Spend $ = Input the CAC$ for each respective month times the number of customers you expect to close to during that time period.
For example, if CAC = $100 and you expect to close 2 customers in March then you would set Additional Marketing Spend to $200 for March ($100 x 2). Recurved would record that you captured 2 customers in March.
