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 Scaling00:00:24 – NCAC: The Metric That’s Cooler Than ROAS00:01:42 – Why Calculating NCAC Feels Like Cracking a Cold Case00:02:42 – Scaling Secrets: Unlocking Business Growth with Math00:03:47 – The Real Cost of New Customers (No, It’s Not What You Think)00:06:10 – Lifetime Value: Measuring Love from Your Best Customers00:09:28 – Practical Math: When Numbers Lead to Dollars00:12:45 – Refunds, Returns & Regrets: Subtracting the Pain Points00:15:30 – Hidden Costs Unveiled: Shipping, Storage & Surprises00:18:05 – COGS: Decoding Cost of Goods Sold00:20:50 – Gross Profit: The Halfway Mark to True Success00:23:15 – Profit Checkpoint: COGS, Gross Profit, and What They Mean for You00:34:10 – A Special Perk for PT Fans: Wrap-Up & SurpriseLINKS AND RESOURCES:Tier 11Mongoose MediaTier 11 JobsPerpetual TrafficGet Your nCAC Calculation Guide Now!Marketing Performance Indicators™ ChecklistPerpetual Traffic on YouTubeTier 11 on YouTubeBy the NumbersConnect with Lauren on InstagramConnect with Ralph on LinkedInFollow Perpetual Traffic on TwitterThanks 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:Tier 11 Data Suite AppSumo - 13% off with code traffic13

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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.