reducing-cac
CAC Optimizer
Overview
CAC is the top pressure point for SaaS at $1M-5M ARR, where every dollar compounds. This skill takes every execution system already built -- content, GEO, sales enablement, paid -- and ruthlessly optimizes them for acquisition efficiency by decomposing blended CAC into channel-level truth.
When to Use
- Cannot answer "what is our CAC by channel?" with confidence
- Blended CAC is rising quarter over quarter
- LTV:CAC ratio is below 3:1 on any channel
- CAC payback period exceeds 18 months
- Spending on channels out of habit rather than evidence
- Founders or board questioning marketing ROI
- Preparing to scale spend and need to validate unit economics first
- Organic pipeline contribution is below 30%
- Paid media costs rising without conversion improvement
Don't use when: You have less than 6 months of channel-level data to analyze, or fewer than 20 customers to establish patterns.
Quick Reference
| Phase | Duration | Output |
|---|---|---|
| CAC audit | Day 1-3 | Channel-by-channel CAC breakdown |
| Channel efficiency scoring | Day 4-5 | Ranked channel scorecard |
| CAC reduction playbooks | Day 6-10 | Prioritized playbooks per channel |
| Paid media optimization | Day 11-15 | Optimized paid media plan |
| Dying tactics identification | Day 11-15 | Channels to kill or reduce |
| Unit economics modeling | Day 16-18 | LTV:CAC model with scenarios |
| CAC reduction prioritization | Day 19-20 | 90-day reduction roadmap |
Core Deliverables
- CAC Audit -- Channel-by-channel CAC, LTV:CAC ratios, scale/hold/kill verdicts
- Channel Efficiency Scorecard -- Composite scoring across 8 dimensions
- CAC Reduction Playbooks -- Zero-cost flywheel, CRO, ICP precision tactics
- Paid Media Optimization Plan -- Targeting, creative, bidding, retargeting
- Unit Economics Model -- LTV:CAC calculator, marginal CAC, scaling matrix
- CAC Reduction Roadmap -- Prioritized 90-day plan with owners and metrics
Common Mistakes
- Optimizing blended CAC without decomposing to channel level
- Cutting channels without checking multi-touch attribution
- Chasing cheaper leads that churn fast (worsens effective CAC)
- Scaling a channel before marginal CAC analysis
- Ignoring fully-loaded CAC (tools, headcount, agencies)
- Keeping channels alive from sunk cost rather than forward-looking data
- Treating CAC optimization as one-time instead of continuous
Integration
Feeds into: tracking-marketing-metrics, managing-marketing-ops
Refresh: Full CAC audit quarterly. Unit economics monthly. Paid media review bi-weekly. Channel kill/keep decisions quarterly. Marginal CAC analysis monthly before any scaling decision.
See workflow.md for detailed phase-by-phase execution, CAC audit templates, channel scoring matrices, reduction playbooks, paid media checklists, unit economics calculators, and prioritization frameworks.