Today we break down one of the most important marketing metrics that rarely gets tracked. Customer Acquisition Cost, or CAC, tells you exactly how much it costs to bring in each new customer.

In this episode we explain what CAC is, how it is calculated, and why it matters for any small business trying to grow profitably and understand their marketing results. We also walk through several practical ways to lower your CAC, and why you should know it across all your advertising methods. In addition, we're comparing CAC to Lifetime Value so you understand how these two numbers work together and why your LTV should always be several times higher than the cost to acquire a customer.

We close the episode with average CAC numbers from common consumer industries so you can see where your business stands. This is a simple and helpful introduction to a metric that can completely change how you manage your marketing budget.

HAVE A SHOW IDEA?

Do you have an interesting idea for a show topic or a marketing problem that you'd like us to cover in a future episode of Mastering Local Marketing? Email matt@masteringlocalmarketing.com and we'll add it to our future episodes.

Mastering Local Marketing is for small business owners—whether you run a restaurant, retail store, service-based business, or handle marketing on your own—who want proven strategies to grow their customer base, increase the number of customers, and market smarter.

Each episode delivers actionable tips on proven marketing strategies that build awareness through digital marketing, content development, engagement strategies, and networking opportunities like key partnerships – while not wasting your time or money on things that don't work.

Fans of these marketing podcasts will find plenty to binge here: Savvy Marketing for Small Business by Samantha Shephard, Grow Your Local Business by Leslie Presnall, Local Marketing Trends by Gordon Borrell, Marketing Ink: Big Ideas for Local Businesses by Allie Bloyd, The Marketing Millennials by Daniel Murray, and The Goal Digger Podcast by Jenna Kutcher.