FAQs Archive - Growth Partners Media

Q: How do I lower my CAC?

To reduce your CAC: ✔ Improve organic traffic with SEO and content marketing ✔ Enhance conversion rates through better website UX and A/B testing ✔ Invest in customer retention strategies like email marketing, loyalty programs, and referrals

Q: Why does CAC fluctuate?

CAC changes based on: Seasonality (Black Friday, Holiday sales) Market competition Advertising costs (Google, Meta, LinkedIn ads) Economic conditions

Q: Should I include operational costs in CAC?

No. CAC only includes marketing and sales costs. Operational costs (e.g., product development, logistics) are separate and calculated under total business expenses.

Q: How often should I calculate CAC?

Monitor your CAC monthly, quarterly, and annually to track performance and adjust marketing budgets accordingly.

Q: What is a good Customer Acquisition Cost (CAC)?

A "good" CAC varies by industry, but a general benchmark is ensuring your LTV is at least 3x your CAC. For SaaS, CAC can be higher due to long-term value, whereas E-commerce businesses typically aim for a lower CAC with repeat purchases.

Q: How Can I Improve My YOY Growth Rate?

Increase Sales & Conversions – Improve marketing efforts to drive higher revenue growth. Expand Customer Base – If customer growth is included, focus on acquisition and retention strategies. Optimize Pricing & Profit Margins – Ensuring higher profitability per transaction can lead to strong YOY growth.