What is your Customer Acquisition Cost, (CAC), and how to lower it? 

Rhea Allen in Gray circle
Rhea Allen in Gray circle

Written By Rhea Allen

Written By Rhea Allen

What is your CAC, or Customer Acquisition Cost?

Your Customer Acquisition Cost is how much it costs to acquire each new customer. This cost includes marketing, advertising, networking, the sales process, cycle, staff hours, materials, etc (the list goes on)!

The length of your sales cycle, time to close, the dollar amount of revenue realized for each customer you acquire, and even the cost of all those prospective clients that never close all add up and eat into your bottom line. 

So how do you reduce your customer acquisition cost AND boost your brand and bottom line?


Automate your sales and marketing process. 

As I always say, “Measure what you treasure, dump what you don’t, and automate what you hate!”

The amount of contact, follow-up, and follow-through that sales require, well, requires a lot of time, and as you know time is money! 

So many components of the sales process can be automated when you have the right tools, whether it comes to prospecting, lead generation, follow-ups, onboarding, and more.


Pick the right avatar, or profile for your ideal customer. 

Your ideal customer is out there, and if you don’t know what makes your ideal customer, ideal, then how will they know that you are their ideal solution? 

Make sure that you have the right avatar or profile of your ideal customer so that you can fine-tune your messaging to reach them easier and sooner!

best avatar 2

Assess what’s working and what’s not working.

Especially with digital marketing, you can easily assess what marketing channels, behaviors, and activities are working, and what is not. 

Here’s another way to make this process a little more straightforward: identify what to stop, start, and keep. 

This is the process that we use when we perform a Marketing Audit for our clients in order to better understand where their marketing dollars are being spent or potentially wasted. 

If something is bearing fruit, keep doing it! If it’s not, stop doing it. If it could bear fruit, start doing it and measure your outcomes!

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Clear calls to action. 

Don’t force your potential customers to waste time trying to figure out what the next step is, or how to buy from you. Make your call to action (CTA) very clear, and concise! Make it easy for them to learn more, contact you, schedule an appointment, or buy now.

call to action

Who is already buying from you and why? 

Speaking of customer avatars/profiles and messaging, it’s a really good idea to get an understanding of why your current customers chose you in the first place. 

Identify your favorite clients or customers, and then do this: ask them WHY they chose you, and why they continue to choose to do business with you. This can be face-to-face, in a survey, etc, but the idea is to learn what makes your current customers happy, in order to better understand what might attract more of the same.

who are you buying from and why

Do what works and then keep doing it…

Marketing is a marathon, not a sprint, and that means that you need to stay the course in order to reap the rewards or observe what’s NOT working so you stop investing time, money, and effort into it what’s not working!

Keep nurturing your prospects, your fans, your looky-loos, tire kickers, and the merely curious. Those who already know about your brand and are familiar with you are more likely to purchase from you than those who don’t after all, and some great referrals can come out of this kind of top-of-mind awareness as well.

do what works

Need a little help identifying, reaching, and catching those ideal clients?

That’s what we do, and we’re here to make it easy for you. 

Contact us today and let’s set up a time to chat about what works best for you!

Are you in need of support from a professional, experienced marketing agency?

We can help!

Saturn with Stars

About Rhea Allen

Since Peppershock’s inception, in 2003, Rhea Allen has managed and expanded Peppershock and has gained local notoriety in her persistent passion for causes. She is involved with the communities of Idaho and surrounding areas and has a vast working knowledge of how to generate awareness for a number of brands and causes. She is extremely diligent in obtaining effective media campaign results by planning and crafting relevant and compelling messaging for the target audience. Rhea oversees the development of all Peppershock projects, from project conception through distribution and follow-up. Read more about Rhea Allen.

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