How to Calculate Your Customer Acquisition Cost

Should you even be using Google Ads? In Episode 88 of the Inside Google Ads podcast, host Jyll Saskin Gales shares a simple framework for business owners to determine how much they should spend on Google Ads and whether their business is even ready to run campaigns. Jyll shares the story of one of her clients, a therapist, and uses this example to walk through how to calculate your customer acquisition cost, a metric that is much more useful and accurate than the numbers you see inside the Google Ads platform.

Jyll explains the three key levers that can be used to lower your customer acquisition cost and make your ads more profitable, including things you can do inside your Google Ads account, as well as things you can do to improve your business outside of Google Ads. This framework is a simple, effective, and relatable way for any small business owner or marketer to determine if Google Ads is a viable marketing channel and how to get the best results.

In this episode, you will learn about:

• The difference between cost per click, conversion rate, and customer acquisition cost
• How to calculate customer acquisition cost, using the numbers from your Google Ads account
• Three key levers to lower your customer acquisition cost
• How to improve your conversion rate, both on and off your website
• Why your sales process is often the most important part of a successful Google Ads strategy
• A simple rule of thumb for determining how much budget to spend on Google Ads

Plus, stay tuned until the end of the episode for a new Insider Challenge to solve!

Do you have a question for Jyll? Drop a comment on Spotify, YouTube, or any of her social media posts, and she'll answer it for you in an upcoming episode.

You can get Inside Google Ads episode transcripts delivered to your inbox each week by signing up for free at https://free.jyll.ca/?utm_source=podcast&utm_medium=referral&utm_campaign=episode88
 
Google Ads Coaching
Need some expert help with your Google Ads strategy? Book a call with Jyll! Learn more at https://jyll.ca/pages/google-ads-coach?utm_source=podcast&utm_medium=referral&utm_campaign=episode88

Inside Google Ads course
Join more than 400+ Google Ads practitioners in Jyll's Inside Google Ads membership course. You'll find up-to-date Google Ads tutorials, and you can ask Jyll your questions at an exclusive live video call every single month. Learn more at https://learn.jyll.ca/iga?utm_source=podcast&utm_medium=referral&utm_campaign=episode88

Read more about this topic on Jyll's Google Ads Blog

• Conquering Google Ads with a Low Budget: 12 Tips for Small Businesses https://learn.jyll.ca/blog/conquering-google-ads-with-a-low-budget-12-tips-for-small-businesses?utm_source=podcast&utm_medium=referral&utm_campaign=episode88
• How to Predict Your CPCs with Google Ads Keyword Planner https://learn.jyll.ca/blog/how-to-predict-your-cpcs-with-google-ads-keyword-planner?utm_source=podcast&utm_medium=referral&utm_campaign=episode88
• Should you work with low budget Google Ads clients? https://learn.jyll.ca/blog/the-truth-about-low-budget-google-ads-campaigns?utm_source=podcast&utm_medium=referral&utm_campaign=episode88

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