Research and Development

What teas do people prefer when working late into the night? The company spends as many resources as possible in research and development to ensure they have a product people will buy.


A comprehensive analysis determines the costs which define the ideal retail price for their market and their margins. All’s well, cost is $1 and the retail is $2, which will give them $1 per unit profit and they forecast to sell 1,000 units a day. Good to go!

Customer Acquisition

Enter Business 101: Determine the cost to find and entice the target market into the store and/or onto the e-commerce site to hand over their hard-earned money. What if you allocate 50 cents per unit to marketing but you discover you’re spending $5 to get a customer to buy from you. You better have a lot ofmoney in reserve and hope that customer buys more than once.

Bottom Line

If the cost of finding customers was incorrectly calculated from the beginning, and the resulting cost of each client's acquisition turns out to be $5, they will be out of business before the first truckload of tea leaves hits the warehouse. No business is exempt from the benefit of determining the lowest possible client acquisition cost. And, customer acquisition costs are typically the highest operating cost to a business.

What Can Analytics Do?

Measure everything. We know the hundreds of millions of searches conducted through Google. Now it’s a matter of getting the right message in front of the right person at the right time. With analytics we can measure where visitors come from, when they come, how long they stay, what actions they take. Analytics will tell us exactly how we are best spending our money by telling us the cost to acquire a customer through each conversion path.