How do I calculate the customer acquisition cost for Mother's Day buyers?

Calculating Mother's Day Customer Acquisition Cost

Customer Acquisition Cost (CAC) measures the average marketing investment required to bring one new customer into your store. For Mother's Day, where promotional spending spikes, understanding CAC helps you determine whether acquiring customers at a holiday discount rate is a profitable long-term strategy.

CAC Formula and Components

CAC-to-LTV Evaluation

• LTV:CAC ratio above 3:1 - Strong campaign economics; each $1 spent on acquisition generates $3+ in lifetime value
• LTV:CAC ratio 1:1 to 3:1 - Borderline; improving post-purchase retention would make the math work
• LTV:CAC below 1:1 - Unprofitable acquisition; discount is too deep or targeting too broad; focus next year's budget on retaining existing customers

Improving CAC

Lower CAC without sacrificing volume by narrowing your paid audience to lookalikes of your best existing customers, reducing the discount depth for first-time buyers who show high intent signals, and shifting budget from broad awareness to retargeting visitors who have already browsed Mother's Day gift categories.