How To Calculate CAC Payback in JD Edwards | Arithmix

Calculating CAC payback is an important metric for any business that wants to understand the effectiveness of its marketing and sales efforts. CAC stands for customer acquisition cost, which is the amount of money a business spends to acquire a new customer. CAC payback is the amount of time it takes for a business to recoup the cost of acquiring a new customer through their purchases.

What Is CAC Payback?

CAC payback is a measure of the efficiency of a business's customer acquisition efforts. It is calculated by dividing the total cost of acquiring a new customer by the revenue generated by that customer over a specific period of time. The result is the number of months it takes for the business to recoup the cost of acquiring that customer.

For example, if a business spends $100 to acquire a new customer and that customer generates $50 in revenue per month, the CAC payback period would be two months. This means that it takes two months for the business to recoup the cost of acquiring that customer through their purchases.

When Is It Valuable To Calculate CAC Payback?

Calculating CAC payback is valuable for businesses of all sizes and industries. It provides insight into the effectiveness of a business's marketing and sales efforts, and can help identify areas for improvement.

For startups and small businesses, calculating CAC payback is especially important. These businesses often have limited resources and need to make every dollar count. By understanding the CAC payback period, they can make more informed decisions about where to allocate their marketing and sales budgets.

Large businesses can also benefit from calculating CAC payback. It can help them identify which marketing channels are most effective at acquiring new customers, and which ones may need to be reevaluated or eliminated.

In conclusion, calculating CAC payback is a valuable metric for any business that wants to understand the efficiency of its customer acquisition efforts. By understanding the CAC payback period, businesses can make more informed decisions about where to allocate their marketing and sales budgets, and identify areas for improvement.

How Do You Calculate CAC Payback in JD Edwards

JD Edwards itself isn’t naturally geared towards letting you calculate complex metrics like CAC Payback. As an alternative, teams typically use products like Arithmix to import data from JD Edwards and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like JD Edwards, combine it with data from other systems, and create calculations like CAC Payback.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating CAC Payback in Arithmix

Calculating metrics like CAC Payback is simple in Arithmix. Once you've created your free account, you’ll be able to import your JD Edwards data, and use it to create natural language formulas for metrics like CAC Payback.

Arithmix is designed to give you the power to build any calculations you want on top of your JD Edwards data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.