How to optimize investments to improve CAC?
Posted: Thu Feb 13, 2025 10:06 am
If the CAC is higher than the average ticket or the LTV, it means that each customer acquired generates damage . And if it is higher than the market average, perhaps competitors are being more efficient or making better investments than you.
So what to do? If you look at the formula again, you will notice two perspectives for working on reducing CAC.
Consider the following:
There is a proportional relationship with investments; that is, the less spending, the lower the CAC. So, one of those perspectives is cost reduction, which can occur by cutting unnecessary expenses.
Perhaps, thinking about your business, some tools, production of material, team trips, participation in events, etc., are not so relevant or are not bringing the necessary return. In these cases, the investment can be cut or reduced.
As for the number of clients, there is an inverse relationship: the more clients, the lower the CAC. So, the other perspective is the generation of more clients .
To do this, investments must be directed towards strategies that increase the efficiency of chinese europe phone number list Marketing and Sales in acquiring new customers (in the next topic we will see some suggestions).
Even better is that the results are predictable, scalable and sustainable. This way, costs can even be reduced over time, but new customers will continue to appear in good volume.
Additionally, by keeping an eye on your neighbor's business, you can try to understand what investments your competitors are making to achieve better performance and generate more customers.
Is it a more comprehensive tool? An automation platform? Team training? Try to find out how to improve your business.
Improving CAC means you need to reduce that number. After all, the less you spend to acquire a customer, the more profitable your business will be and the more investments you can make in solutions, equipment, infrastructure, etc.
As we said in the previous topic, if your CAC is high, you must adopt strategies that optimize investments and increase the efficiency of the Marketing and Sales areas in customer generation. Let's look at some actions you can take.
So what to do? If you look at the formula again, you will notice two perspectives for working on reducing CAC.
Consider the following:
There is a proportional relationship with investments; that is, the less spending, the lower the CAC. So, one of those perspectives is cost reduction, which can occur by cutting unnecessary expenses.
Perhaps, thinking about your business, some tools, production of material, team trips, participation in events, etc., are not so relevant or are not bringing the necessary return. In these cases, the investment can be cut or reduced.
As for the number of clients, there is an inverse relationship: the more clients, the lower the CAC. So, the other perspective is the generation of more clients .
To do this, investments must be directed towards strategies that increase the efficiency of chinese europe phone number list Marketing and Sales in acquiring new customers (in the next topic we will see some suggestions).
Even better is that the results are predictable, scalable and sustainable. This way, costs can even be reduced over time, but new customers will continue to appear in good volume.
Additionally, by keeping an eye on your neighbor's business, you can try to understand what investments your competitors are making to achieve better performance and generate more customers.
Is it a more comprehensive tool? An automation platform? Team training? Try to find out how to improve your business.
Improving CAC means you need to reduce that number. After all, the less you spend to acquire a customer, the more profitable your business will be and the more investments you can make in solutions, equipment, infrastructure, etc.
As we said in the previous topic, if your CAC is high, you must adopt strategies that optimize investments and increase the efficiency of the Marketing and Sales areas in customer generation. Let's look at some actions you can take.