Post 3: Analyzing Costs and Profitability: CAC and ROI
🎰 Welcome back to my series on online casino metrics! 🎰 Today, we'll discuss two key metrics that help evaluate the effectiveness of your marketing efforts and profitability: CAC and ROI. 📊 Customer Acquisition Cost (CAC) What is it ? CAC shows how much it costs to acquire a new customer. This is crucial for understanding the efficiency of your marketing expenditures. How to calculate it? Formula: CAC = Total Marketing Costs / Number of New Customers Example: Your casino spent €100,000 on marketing and acquired 500 new customers. CAC = 100,000 / 500 = €200 This means each new customer cost you €200. 📊 Return on Investment (ROI) What is it? ROI measures the percentage of profit from your investments. This helps assess the profitability of your marketing campaigns. How to calculate it? Formula: ROI = ((Profit − Costs) / Costs) × 100% Example: You invested €100,000 and made a profit of €150,000. ROI = ((150,000 − 100,000) / 100,000) × 100% = 50% This means your...