Also within the framework of calculating unit

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hasibaakterss3309
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Joined: Thu Jan 02, 2025 7:09 am

Also within the framework of calculating unit

Post by hasibaakterss3309 »

It is important to understand how to take into account fixed costs when assessing the effectiveness of traffic acquisition channels. Here it is worth proceeding from the goal that you set for yourself in the calculations. As a rule, when calculating unit economics, marketers either compare the effectiveness of traffic acquisition channels to understand which of the channels to scale first, and in mongolia company email list which channel, on the contrary, to reduce the advertising budget. The purpose of the calculations can be to calculate the payback of marketing activities, for example, launching a promotion with an additional discount for the first order or giving incentive gifts for the holidays to customers who made a purchase in certain months (as an option, in the low season). economics, you can evaluate the effectiveness of activities for the sale of individual products (work of business areas).

The first option for distributing Fix Costs in unit economics: divide all fixed costs equally between all traffic acquisition channels. This approach is acceptable when solving the problem of comparing the efficiency of traffic channels, when you know that each channel pays off in principle, but it is important to identify the most productive ones. In this case, you are interested in the ratio of the costs of attracting each buyer and the costs of providing him with a product, in order to understand which channel is worth scaling, and which one, on the contrary, should be abandoned.

The second, more correct option (I prefer this one): distribution of Fix Costs in accordance with the share of products sold through each channel. In this case, you tie a certain percentage of fixed costs to each unit of products manufactured and sold in the analyzed period. For example, in March 2024, you sold 100 units of products, accordingly, from the margin that you receive from each unit, a fixed amount will go to cover fixed costs (for each unit - 1/100 of all Fix Costs).

Through customer acquisition channel #1 you sold 10 units of product, through acquisition channel #2 - 15 units of product, and through acquisition channel #3 - 75 units of product.

Accordingly, you assign 10% of fixed costs to attraction channel #1, 15% to channel #2, and 75% to channel #3. This method of distributing fixed costs is justified when solving any problem using unit economics.

Thus, correct accounting of fixed costs when calculating unit economics allows us to understand the real result of launching certain advertising campaigns and the work of individual traffic attraction channels.

I wish you success in marketing!
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