Reduce E-commerce CAC
CAC isn’t a media problem — it’s a funnel problem wearing media’s clothes. Cheaper acquisition comes from truth, creative and retention, in that order.
Why it keeps happening
This isn’t one bug — it’s usually a stack of small leaks. These are the culprits we find most often:
- CAC read from ad dashboards, not real margins and cohorts
- Broad targeting and tired creative burning budget on the wrong people
- No retargeting or retention — every sale purchased at full price
- Budget steered by impressions and clicks, not revenue per segment
Metrics that matter
CAC by channel, Blended CAC, Payback period, LTV : CAC. Definitions live in the glossary — no jargon, no hand-waving.
How we fix it, step by step
Get CAC truth
Real CAC per channel, source and cohort — versus LTV and payback period, from order data not platform reports.
Fix creative before budgets
Test hooks, formats and angles weekly; kill underperformers in days. Creative is the cheapest lever on CAC.
Narrow and refine audiences
Retargeting, lookalikes from real customer data, exclusions — spend on people who already fit.
Let retention lower the blended number
Repeat purchases and recovery flows pull blended CAC down faster than any bid strategy.
Bid on margin, not vanity
Targets that respect AOV and margin per product line, with CAC per SKU in the dashboard.
Services in this playbook
This playbook in the field
Related fixes
Fix It With Data, Not Hope
Get an honest audit of the exact leak behind your problem — no obligation, no jargon.