KARBON AGENCY
Revenue & ROI

What's a good Customer Acquisition Cost?

A good Customer Acquisition Cost for a local business is $50.00 or lower. Total cost to acquire one paying customer. An excellent Customer Acquisition Cost — the top tier Karbon Agency grades client campaigns against — is $20.00 or lower, while $100 marks the minimum acceptable tier.

The three tiers Karbon grades against

TierValueWhat it means
Minimum$100The floor. Below this, something is broken.
Recommended$50.00The tier a healthy campaign should hit.
Excellent$20.00Top-tier performance worth defending.

Lower is better for this metric.

How it's calculated

Total Sales & Marketing Spend / New Customers

Why Customer Acquisition Cost matters

Sets the ceiling on how much you can spend to grow. If CAC exceeds first-purchase revenue, you need strong retention or high LTV to justify the investment.

Related benchmarks

Return on Ad Spend

Good: 4.0x or higher

LTV:CAC Ratio

Good: 3.0x or higher

Revenue Per Customer

Good: $150 or higher

Average Order Value

Good: $50.00 or higher

Where does your Customer Acquisition Cost land?

Karbon Agency grades every client campaign against these exact tiers, live on a dashboard — no guessing, no quarterly PDFs.

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