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:

• Tier 11
• Mongoose Media
• Tier 11 Jobs
• Perpetual Traffic
• Get Your nCAC Calculation Guide Now!
• Marketing Performance Indicators™ Checklist
• Perpetual Traffic on YouTube
• Tier 11 on YouTube
• By the Numbers
• Connect with Lauren on Instagram
• Connect with Ralph on LinkedIn
• Follow Perpetual Traffic on Twitter

Thanks so much for joining us this week. Want to subscribe to Perpetual Traffic? Have some feedback you’d like to share? Connect with us on iTunes and leave us a review!

Mentioned in this episode:

https://perpetualtraffic.com/advertise-with-us/

www.AdRoll.com/PT

https://www.NEXTInsurance.com/perpetual

https://www.activecampaign.com/