So, if ACME spent $400,000 and generated 90 “Classic Cindy” sales, nine “Pro Paul” sales, and one “Infinity Izzie” sale, here's how their acquisition cost would break down: cac-acme-buyers-personas With this pattern, it looks like ACME is losing money on “Classic Cindys,” but more than making up for it on “Infinity Izzies.” Advertising Continue reading below However, this model assumes that 'Classic Cindys', 'Pro Pauls' and 'Infinities Izzies' all run through the same campaigns and channels at the same frequency. If you think about it, it doesn't make much sense. Is 'Infinity Izzie' - a corporate client that will lose $1.59 million on widgets - likely to respond to the same ads as 'Classic Cindy'? I strongly doubt it. Perhaps most of “Classic Cindy's” sales come from cheap social media ads. "Pro Pauls" click YouTube ads.
The "Infinity Izzies" come from very fax list expensive paid search ads. If so, here's what ACME's actual acquisition costs might look like: acme-buyer-accurate-personas-cac Now, your marketing channels might not be that simple, but with a little effort, you should be able to tie your marketing dollars to the buyer persona sales they produce. Advertising Continue reading below As you evaluate each marketing channel, don't be surprised if you . Some channels seem to generate a lot of value, but when you look at the revenue they produce, they are a waste of money. On the other hand, sometimes a channel may look like a loss on the surface, but when you dig into your data, you uncover a gold mine! Phase.
Establish your budget Alright, we did it! Now that we have the information we need to calculate your marketing budget, all we have to do is run the numbers. Since it's a bit of a pain to do by hand, I've created a free calculator on my site to help you out. But, if you like to do it the hard way, I'll show you how to do that too. Step 1 Multiply your revenue goal by the percentage of your revenue you want to generate for each buyer persona. For example, if ACME's revenue goal was $2,425,500, here's how they might break down their buyers' contributions: Advertising Continue reading below “Classic Cindy”: 6% ($157,500) “Pro Paul”: 27% ($648,000) “Infinity Izzie”: 67% ($1,590,000) 2nd step Divide your revenue goal for each buyer persona by the revenue per sale for that buyer persona.