KPIMarketing

Customer Acquisition Rate

Number of net-new customers acquired through marketing campaigns in a period

What is Customer Acquisition Rate?

Customer acquisition rate is the number of first-time customers that marketing brought in during a period. It shows how effectively marketing is winning new business.

New customers are the source of future growth and lifetime value, so tracking the count shows whether marketing is feeding the customer base as planned.

How this KPI is measured

Function: Marketing
Sub-function: Customer Acquisition
Industry: All Industries
Type: Lagging
Impact: Revenue
Unit: #
Measurement frequency: Monthly / Quarterly
Formula: Count of first-time purchasing customers attributed to marketing in period

How to calculate it

Count the first-time purchasing customers attributed to marketing in the period.

For example, if 340 people made a first purchase after a marketing interaction this quarter, the figure is 340.

Agree the attribution rule and apply it consistently. Separate new customers from returning customers, and compare with the cost of acquiring them.

Where it is used

Tracking growth
See whether new customer numbers are meeting the plan.
Comparing channels
Find which channels win the most new customers.
Planning budgets
Estimate how many customers a given investment is likely to bring.

How to improve it

Define a new customerDecide whether it means a first purchase, first order or first contract.
Track the sourceRecord how each new customer first found you.
Improve the first-purchase experienceMake the path from interest to purchase short and clear.
Invest in the best channelsShift spend towards the channels that bring the most customers.

Tips and common mistakes

Read the count with acquisition cost, or growth may be too expensive.
Do not count returning customers as new, or the figure will be inflated.
Consider the quality of new customers by looking at how many buy again.

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