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

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Mentioned in this episode:

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AdCritter for Agencies

The 5 Step Formula to Determine Your nCAC

Perpetual Traffic