Running a DTC eCommerce business is an investment. A considerable part of a brand’s resource goes into driving traffic and convincing prospects into becoming customers. All of that contributes to raising CAC (customer acquisition cost).
The higher the CAC, the less profitable the business. That’s why many brands strive to lower CAC while maintaining revenue. But how do you reduce CAC and boost your bottom line?
The first step to dealing with the problem is knowing your true CAC. It’s not just marketing spend that goes into the calculation of CAC. Employee salaries, overhead, paid marketing, tools, and anything else relevant to your company all factor into calculating CAC.
You can only develop a plan for decreasing CAC once you have an accurate cost. An ideal CAC is something much lower than the CLV (customer lifetime value). For example, a CLV to CAC ratio of 5:1 is excellent.
Plus Customer Success Strategist
Tech Partner Manager
Associate Director, Enterprise Sales
Director of Marketing Strategy
Tech Partner Manager Lead
Mia is the Tech Partner Manager at Gorgias where she collaborates with ISV partners to develop joint business strategies, strengthen “better together” relationships, and produce innovative partnership playbooks. When Mia isn't working, you'll usually find her at home with her wife, reading a good book and drinking a cup of blueberry tea!
Ryan is an Associate Director of Sales at Sezzle, North America's most-chosen "Buy now, pay later" solution, and the first employee of their Canadian expansion team. Ryan focuses on expanding the business & the mission of "financially empowering the next generation".
Magda Houalla (sounds like “koala”) is the Director of Marketing Strategy at Aspire. As a leader in the Influencer marketing space, Madga helps brands across all industries start, expand, and optimize their campaigns to help meet and exceed their specific goals.
Lisa is founder at Cartloop, a collaborative SMS platform for Shopify brands. She's a Med School graduate turned to tech, an entrepreneur with over 6 years of eCommerce experience, now bringing the human back to tech.