This Upsell Efficiency Template, by Ben Murray, is an incredibly useful tool. It is used to work out the upsell efficiency of a business over a period of time. The Excel template is currently set at a 14 month duration.
The template enables the user to work out the CAC efficiency. CAC stands for Customer Acquisition Cost. An ideal CAC ratio is somewhere in the region of 3:1. This means that the value that the new customer, or client, is bringing a business is three times higher than the cost associated to acquiring the new customer and bringing them to the business.
These costs can be incurred through marketing, advertising, hours spent in reaching out, and communicating with the new customer, and so on. Spending too little, and having a higher ratio of perhaps 5:1, can have a negative effect and can mean that a business is potentially missing out on expansion opportunities. However, having a smaller ratio closer to 1:1 means that too much is being spent and the reward is not large enough to warrant the effort.
This spreadsheet has helpfully had the input cells highlighted in yellow, helping to make the template very easy to work and manipulate.
