The Ecommerce Alley

TEA 111: How Much Should You Spend To Get A New Customer?


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(This episode is a re-run that originally aired on October 2, 2023.)
If you walked into Shark Tank, there are three pretty common questions you'd get asked. Most people know the answer to TWO of them: what are your sales? What is your profit?

But most can't answer: what's the cost to acquire a customer?

In the marketing world, the acronym for this is CAC. (Cost to Acquire a Customer)

Every successful business obsesses over this number and does so on two primary levels: "blended" and by marketing channel.

In this episode, Josh dives into what CAC is and a little exercise to determine what yours should be, based on your business model.

By knowing this information, you can pour on the marketing gasoline, so long as you're in your "Target CAC" range!


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The Ecommerce AlleyBy Josh Coffy

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