Consider the baseline scenario of cost projections for an e-commerce platform for Q1 2024:
It has 3 existing customer cohorts, to which the platform will send 2 messages per customer at a cost of ₹1 per message.
- Cohort A (joined in 2021): 5,000 customers,
- Cohort B (joined in 2022): 7,000 customers
- Cohort C (joined in 2023): 8,000 customers
Additionally, the platform is expecting in Q1 2024
- 1,000 new customers from Meta Ads at a projected CAC of ₹1,000 (from past trends/benchmarks)
- 500 new customers from Google Ads at a projected CAC of ₹1,500 CAC, and
- 300 new customers organically.
However, if the e-commerce platform decides to
revise its assumptions:
- Customer Acquisition Cost (CAC) assumption for Google Ads from ₹1,500 to ₹1,200, and
- frequency of its remarketing message (sending 4 messages instead of 2, for every existing customer),
what would be the new Marketing Cost for Q1 2024?