Perpetual Traffic The #1 Metric That Will Completely Transform Your Business’s Bottom Line
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Jul 8, 2025 Scott Brandley, host of the Cashflow Kings podcast, is joined by Ralph Burns, a marketing strategist known for helping e-commerce CEOs boost their profits. They dive into the crucial topic of New Customer Acquisition Cost (NCAC), revealing why it's the key metric that often gets ignored. Ralph shares strategies for outspending competitors while protecting profit margins and discusses the importance of precise calculations in driving revenue growth. Listeners will learn tactics for smart scaling, optimizing customer acquisition, and boosting average order value.
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NCAC is Critical Metric
- New Customer Acquisition Cost (NCAC) is the most critical metric for any e-commerce business to know and control.
- Many large businesses still lack a precise understanding of their NCAC, which hinders profitable growth.
Calculate Accurate Customer LTV
- Calculate your customer lifetime value (LTV) by dividing total revenue by unique customers over an appropriate lookback period.
- Choose the lookback period based on how your customers typically repurchase, which varies by product type.
Factor Refunds and COGS
- Subtract refunds and cancellations from your LTV to get the true net LTV.
- Then subtract your cost of goods sold (COGS) to determine your gross profit per customer.
