See POAS vs revenue-only reporting
Profit Bid connects store costs to ad spend so you bid on margin — not vanity ROAS.
Track POAS automatically from your store — upload profit conversions and scale winners with A/C/X labels.
CAC vs CPA
CPA usually counts ad spend per conversion inside a platform. CAC adds tools, agency fees, creative, and counts new customers rather than orders.
A returning customer's order lifts CPA-style metrics but does not add to CAC, since no new customer was acquired.
Managing CAC
CAC creeps up as you scale into less efficient audiences. Manage it by:
- Isolating paid CAC by channel to find efficient growth.
- Improving conversion rate to lower CAC without cutting reach.
- Raising AOV and repeat rate so a higher CAC still pays back.
- Bidding on profit so CAC scales with customer value.
Frequently asked questions
Common questions about this topic — tap to read answers.
What is a good CAC?
There is no universal number. A good CAC is one your LTV comfortably exceeds — aim for an LTV:CAC ratio of 3:1 or better.
Should CAC include organic customers?
Blended CAC does (all new customers ÷ all spend). Paid CAC isolates acquisition channels. Track both.
