Emergency situation

In case of emergencies or breakdowns, you can send an SMS to our emergency hotline

On-call phone (SMS only)

+45 29 70 15 95

Send an SMS with the following information:

  • Your name and webshop
  • Description of the problem
  • Your callback phone number

Notes: This service is only for critical situations where your webshop is down or has serious problems. For regular support, please use our normal support channels.

CAC - Customer Acquisition Cost

CAC (Customer Acquisition Cost) is the average cost of acquiring one new customer. It is one of the most important metrics to assess whether your marketing is profitable and sustainable.

What is CAC?

Customer Acquisition Cost is calculated by dividing your total marketing and sales costs by the number of new customers in a given period:

CAC = Total marketing costs / Number of new customers

If you spend 50,000 kr. on marketing in a month and acquire 100 new customers, your CAC is 500 kr.

What should be included in CAC?

To calculate CAC correctly, you must include all costs related to customer acquisition:

  • Ad spend: Google Ads, Facebook/Instagram, TikTok, etc.
  • Content production: Blog posts, videos, graphics for ads.
  • Software: SEO tools, email platform, analytics tools.
  • Any agency fees: If you use an agency for advertising.
  • Discounts and promotions: First-purchase discounts used to attract new customers.

CAC and CLV — the most important ratio

CAC alone is meaningless without context. The most important thing is the ratio between CAC and CLV (Customer Lifetime Value):

  • CLV:CAC ratio: A healthy ratio is typically 3:1—the customer brings in 3 times their acquisition cost over time.
  • 1:1 or lower: You’re spending as much (or more) to acquire the customer as they’re worth. Unsustainable.
  • 5:1 or higher: Either you’re very efficient, or you’re underinvesting in growth.

CAC per channel

It’s valuable to calculate CAC separately for each marketing channel:

  • Google Ads: Typically medium to high CAC, but with clear purchase intent.
  • Facebook/Instagram: Can have a lower CAC with good creative and targeting.
  • SEO/Organic: Low marginal CAC over time, but requires an initial investment.
  • Email: Very low CAC for existing subscribers, but requires them to sign up first.

By knowing the CAC per channel, you can allocate your budget to the most effective channels.

How to Reduce CAC

  • Improve the conversion rate: Same ad spend, more customers = lower CAC.
  • Optimize ads: Better creatives, better targeting, and negative keywords reduce waste.
  • Increase organic traffic: SEO and content marketing drive traffic without a cost-per-click.
  • Referral programs: Existing customers bring in new customers at a low cost.
  • Retargeting: Convert visitors who already know you—it’s cheaper than acquiring brand-new users.

CAC payback period

The payback period is the time it takes to recoup the CAC from a new customer. If your CAC is 500 kr. and an average customer spends 250 kr. with a 50% margin (125 kr. profit per order), it takes 4 orders to recoup the CAC. The shorter the payback period, the faster you can reinvest in growth.

How to Use Shoporama

Guides that demonstrate the concept in practice

Customer retention - target repurchase and cohort analysis

Understand your customer retention with Shoporama's cohort analysis. See reorder rates, time to repurchase and a...

Customer statistics - understand your customers' behavior

The Customer Statistics page in Shoporama gives you an overview of return rates, customer segments and your most...

We know online marketing in Shoporama

We've been working with online marketing ourselves for decades. As the only shop system in the country, we have spoken multiple times at conferences such as Marketingcamp, SEOday, Shopcamp, Digital Marketing, E-commerce Manager, Ecommerce Day, Web Analytics Wednesday and many more.

See the full dictionary