Why is CAC important?

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After doing the calculation we showed above, you might be wondering: how do I know if that number is good for my business?

Each business area or type of company has a different average CAC. So, we have bad news: it is not possible to determine a reasonable Customer Acquisition Cost value for all markets.

But don't be sad: the good news is that if you look inside, you will have the answer you need. Look:

If you have a one-time purchase business (a shoe e-commerce , for example), your CAC should be lower than the average ticket spent by the customer in your store.

Let's say your CAC over the last month has been $500 and your average ticket was $400. In that case, you're taking a $100 loss in customer acquisition for each new customer. If you don't adjust your strategies, you could be on the right path to sinking your company...

If you have a recurring purchase business (a subscription-based software, chinese europe phone number list for example), your CAC should be lower than your LTV. But what does this mean? LTV stands for Lifetime Value , meaning everything a customer spends while connected to your company.

For example, if you pay $200 per month and stay with your software for an average of 4 months, your LTV is $800. If your CAC is $1,000, you are losing $200 in acquiring a new customer.

So, to find out if your CAC is good, look at what the consumer is spending with you. If what they pay exceeds your investment, congratulations: your acquisition cost is favorable.


How much a company invests to acquire a customer is the basic data that we can extract from the CAC. But this metric can reveal many other aspects that help in making strategic decisions.

From the analysis we explained above, you can see that your CAC is not satisfactory. This data shows that the health of the business is not going very well...