Cost per customer acquisition


Suppose you work for an eCommerce company that provides a marketplace for 3rd party sellers to sell their goods. The marketing team has asked you to help identify how much they should spend to acquire 1 new customer. They provided you with a sales dataset that provides item-by-item purchase quantities, as well as the customer ID of the buyer. The eCommerce company collects 10% from the sales made on the platform as profit.

Given this information, create a recommendation for a targeted cost per new customer acquisition. Note, you can assume UnitPrice is in the same currency across all the countries.

Additionally, here is code to import the relevant packages (using Python) as well as the dataset shown above, to help get you started:

import pandas as pd
import numpy as np  
df = pd.read_csv('')

This is an example of a more open-ended/case study question that does not have a single correct answer, where your thought process/methodology will hold a higher weight than the specific numerical value. Solution will contain a detailed recommendation.


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