How Active SEO Can Drive Down Customer Acquisition Costs‍

Fourth-grade math taught us all about the concepts of profit and loss, skills we refined as we played Monopoly or ran summertime lemonade stands as kids. These may be basic concepts, but they apply to every business endeavor you undertake as an adult.

‍The goal of business is always to spend less and earn more — to scale down expenditure and scale-up revenue. To achieve that, you need to find the most cost-effective ways to acquire new customers. In a world where business and advertising are done largely online, this means you need to reduce your customer acquisition costs (CAC) while increasing sales.

‍But how exactly do you do that, when your ads aren’t working and your traffic is stagnant? One easy way to find more customers without spending a ton of money is by adopting active SEO.‍

In this piece, we’ll discuss CAC and what it means for your business. We’ll also show you how to use active SEO to land your CAC (and other KPI) where you want it.

What is Your Customer Acquisition Cost?

Customer Acquisition Cost (CAC) refers to the costs you incur while trying to attract a new customer. It encompasses all such things as ad expenditure, sales team salaries, and marketing team salaries. CAC is important because it tells you whether your business ventures and your marketing efforts are profitable or not.‍

Generally speaking, an ideal CAC is one that has a ratio of 3:1 (where 3 represents profit and 1 represents cost). Achieving an “ideal” (or better) CAC may sound awfully difficult, especially if you’ve tried multiple advertising or marketing approaches. But a highly underestimated strategy, one you don’t usually tie directly to CAC, is utilizing strong active SEO.

Why Use Active SEO?

Stats show that the average business spends between $9,000 and $10,000 monthly on Google advertising campaigns, totaling $108,000 to $120,000 per year for an average bear. The size and scale of your business affect your spending, but even for an average business, those numbers represent a pretty significant chunk of your annual budget.