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Customer Acquisition Cost or CAC is a vital measure that tells the efficiency of your various campaigns. It can determine how costly or profitable it is for your company to stay stable and scale. Lowering CAC is what keeps most business owners up at night. 

In this episode, Jordan West discusses what CAC is and how to reduce your CAC in 2023 effectively.

Listen and learn in this episode!

Key takeaways from this episode:

How to lower your CAC:

1. Prioritize organic marketing. Organic marketing channels such as TikTok, Instagram, and SEOs are effective in driving customers to your store without costing you so much.
2. Focus on your AOV. The higher your AOV gets, the higher you can spend on CAC. Keep your marketing budget on that 20% mark.

• Create an order minimum for free shipping
• Bundle products to create packages
• Do some up-selling or cross-selling
• Incorporate live chats and live events

           3. Lower your cost of goods sold. Every dollar you’re not spending on your manufacturing can be in your pocket or spent to acquire new customers.

• Getting your marketing budget right is knowing how much you can spend to stay stable and how much you can start to scale from there.
• CAC is not all about your ads. Your email flow, SMS flow, pop-ups, social media, word-of-mouth, SEO, direct mail, traditional advertising, and how well you’re targeting and retargeting people also matter. 
• Social Media is still one of the best ways for DTC brands to get customers, but all channels work in tandem with each other.  
• Industry benchmarks can be helpful for early-stage companies to keep the CAC sustainable.

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