Why nCAC Is ‘The New ROAS’ in Digital Marketing With Scott Desgrosseilliers
Apr 2, 2024
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Guest Scott Desgrosseilliers discusses why nCAC is the new ROAS in digital marketing. Topics include limitations of ROAS, challenges of new customer acquisition costs, understanding nCAC, and innovative data analysis strategies.
New Customer Acquisition Costs (NCAC) reveal true cost of acquiring new customers, challenging traditional attribution models.
Accurate attribution in digital marketing requires separating NCAC from Customer Acquisition Cost (CAC) for reliable metrics.
Balancing Return on Ad Spend (ROAS) and NCAC is essential for sustainable business growth, emphasizing the need for aligning marketing goals with accurate metrics.
Deep dives
Importance of New Customer Acquisition Costs (NCAC)
The podcast discusses the importance of tracking New Customer Acquisition Costs (NCAC) as a crucial metric for business growth. By analyzing data from CRM systems and segmenting new customers from repeat customers, NCAC reveals the actual cost to acquire new customers, highlighting that new customer acquisition costs are typically higher than reacquiring existing customers. This insight challenges traditional attribution models and emphasizes the significance of understanding NCAC for effective marketing strategies.
Challenges of Accurate Attribution in Digital Marketing
The episode highlights the challenges of accurate attribution in digital marketing, particularly in distinguishing new customers from repeat buyers. It points out the limitations of platforms like Facebook and Google in providing clean and unbiased data, underscoring the prevalence of view-through conversions that may not truly represent new customer acquisitions. The discussion emphasizes the importance of separating NCAC from Customer Acquisition Cost (CAC) and the need for reliable metrics to drive business growth.
Balancing ROAS and NCAC for Effective Marketing Strategy
The podcast delves into the dilemma of balancing Return on Ad Spend (ROAS) and New Customer Acquisition Costs (NCAC) to optimize marketing strategies. It cautions against solely focusing on high ROAS numbers, which can be manipulated and fail to reflect true business growth. The conversation underscores the necessity of aligning marketing goals with the right metrics, such as NCAC, to drive sustainable business development.
Utilizing Tools like Wicked Reports for Data-Driven Decisions
The episode introduces the use of tools like Wicked Reports for data-driven decision-making in marketing. By providing transparent and real-time data insights, tools like Wicked Reports enable businesses to analyze new customer acquisitions, repeat purchases, and overall campaign performance. The discussion emphasizes the importance of leveraging accurate data to optimize media mix, improve customer acquisition strategies, and drive business efficiency.
Upcoming Innovations in Attribution Reporting
The podcast teaser hints at upcoming innovations in attribution reporting, introducing a Netflix-style interface for marketing analytics. The new interface aims to simplify data visualization and streamline campaign analysis by categorizing metrics like Facebook New Customer Acquisition and Google Retargeting. It promises to automate and optimize data interpretation, aiding marketers in making informed decisions to drive business success.
Tune into this episode where numbers do more than just add up; they tell tales, reveal truths, and sometimes, lead us on merry chases around the digital marketing maypole. Join Ralph Burns and Kasim Aslam, your guides through the numerical wilderness, along with Scott Desgrosseilliers, the mastermind wizard behind Wicked Reports. Together, they embark on a quest to unravel the enigmatic realm of New Customer Acquisition Costs (NCAC), throwing the gauntlet down at the feet of the age-old marketing monarch, Return On Ad Spend (ROAS).
With wit sharper than a spreadsheet's edge, they explore the alchemy of accurate attribution, transforming raw data into golden insights for scaling and nurturing your business garden. This episode is a pilgrimage to the holy grail of marketing metrics, offering a fresh map to navigate the digital age's growth landscapes. Tune in to elevate your marketing metrics wisdom, decode the mysteries of customer acquisition, and perhaps, find the secret passage to sustainable growth. This is a must-listen for anyone looking to conjure up business success without falling for the illusion of misleading metrics. Welcome to the grand tour of the future of marketing, where data dazzles and insights inspire!
Chapters:
00:00:00 - Setting the Stage: Meet the Voices Behind the Mics
00:02:07 - Metrics Unmasked: Diving Deep Without the Deep End
00:03:28 - NCAC Revealed: More Than Just Alphabet Soup
00:05:18 - View-Through Conversions: Seeing Through the Marketing Mirage
00:08:11 - The Balancing Act: Juggling NCAC and CAC Without Dropping the Ball
00:11:19 - Tool Time with Wicked Reports: The Sherlock Holmes of Marketing Data
00:15:05 - Wicked Reports Unwrapped: Peeking Behind the Curtain of Data
00:17:20 - Journey Mapping: Where Data Tells a Story
00:19:45 - The Duel: NCAC vs. CAC in the Ultimate Showdown
00:22:30 - Ad Platforms on Trial: Judging the Numbers
00:25:15 - Tales of Triumph: When Data Leads to Victory
00:28:37 - Peering Into the Crystal Ball: The Future of Attribution Analytics
00:30:40 - The Final Bow: Leaving You Smarter and Ready for Action
Connect with Kasim on Twitter and Connect with Ralph on LinkedIn
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