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“How can I measure the success of my rebrand?”

If you're anything like me, opinion alone isn't always enough and it can be helpful to look at some numbers to inform your decisions.

Your rebrand will affect many metrics, but I find the cost of acquiring a customer to be the most insightful (aka customer acquisition cost or CAC).

Measuring this is simple— I’ll walk you through it now:

As a benchmark, let's look at your numbers from last year.

Take the total that you spent on marketing and divide it by the number of new customers you acquired.

The result is the average amount that it cost you to acquire a customer last year (CAC).

For example, if a company spent $100 on marketing in a year and acquired 100 new customers, it costs them $1.00 to acquire a customer on average.

Additionally, rather than viewing this on a broad scale across your entire business, it may be beneficial to examine it in a more isolated manner.

For instance, I personally opt to monitor CAC primarily on Meta ads, as this is where all of my ad spend goes and I can get data very quickly.

Once you have this benchmark in place, now you can play with your inputs (ie. rebrand, adjust messaging / creative, redesign your website, etc) and run the calculation again to see the difference.

A lower CAC would signify an improvement as your brand is resonating with people.

A similar or higher CAC would indicate that your efforts were not effective.

Any thoughts or questions? Interested in joining The Small CAC Gang?

Feel free to reply here!

– Charles

Song of the day
Motorcycle Drive By by Third Eye Blind