Improve your site for conversions. Meaning make your website more appealing with graphical design, promotional offers, user feedback etc. –
Optimize your paid ad campaigns, so that you spend less for the same result. Alternatively, use programmatic advertising tools
for cost-efficiency and to build brand awareness. –
Invest in cheap marketing channels like email marketing, social media or content marketing. –
Create a referral program to attract new customers via the existing user base.
Some businesses can afford to lose money and spend more on CAC while having low LTV. This is done to combat competition but eCommerce businesses usually don't have margins to do that and that is why it is important to use your resources efficiently.
You can calculate your
CAC by dividing your total marketing spend by the number of your customers. That's an overall figure, however. It's also useful to calculate your
CAC by source. You want to know your
CAC for each traffic channel.