4. Which FMCG
companies are
these?
Company A – Established in 2006
Company B – Established in 1936 ₹0
₹5,000
₹10,000
₹15,000
₹20,000
₹25,000
₹30,000
₹35,000
₹40,000
₹45,000
J
a
n
-
1
1
J
a
n
-
1
2
J
a
n
-
1
3
J
a
n
-
1
4
J
a
n
-
1
5
J
a
n
-
1
6
J
a
n
-
1
7
J
a
n
-
1
8
J
a
n
-
1
9
J
a
n
-
2
0
J
a
n
-
2
1
Revenues (Crores)
Company A Company B
7. Positive Fanaticism
Core Belief Systems Drive Fanaticism.
Understand your consumers core Belief systems.
creatE motivations for positive fanaticism.
Leverage Fanaticism for Good.
8. CAC Vs CAX - Which drives better roas?
Customer Vs Fan Vs Fanatic
• Cost of Acquiring a Customer = CAC
• Cost of Customer Advocacy and Experience = CAX
• Paid Marketing CAC = (Cost spent on Paid Marketing) / (Customers Acquired)
• Dn CAX = (Dn ARPU) * (Dn Retention Rate) * (Dn Paid Referrals / Customers)
Here: D is days and n is the number of days.
Dn CAX ROAS = Dn CAX / Dn CAC
9. Illustration
• CAC: $100 | ARPU: $1000 | Retention Rate: 40% | Paid Referrals: 2
• ROAS = ($1000*40%) / $100 = 4
• CAX = ($1000*40%*2) / $100 = 8
The key is people driven content and retention Amplification.
CAC Vs CAX - your roas driver is retention
Customer Vs Fan Vs Fanatic
10. What’s your Competitive advantage?
• Everyone has the same open auction platform access.
• Compete with creative. Use authenticity.
• Nothing beats retention. Advocacy drives WOM.
• Retention and advocacy enables acquisition.
• CAX is the competitive advantage.
• Leverage AI for Retention. Your Differentiator.
11. Rx Amplify. GROW.
Focusing on CAX – Retention and Advocacy.
Higher revenues | Subsidized CAC.
Compete better in the market.