Yesterday’s CAC Doesn’t Scare Me
I wouldn't worry if yesterday's CAC was way above goal.
I would worry if the last 7 days' CAC was way above goal.
I would panic if the last 30 days' CAC was way above goal.
I would run if the last 60 days' CAC was way above goal.
Here's a framework that turns your escalating concern levels into a structured monitoring/response system.
Monitoring System
Set up automated alerts based on the following thresholds:
👉 Daily Alert: CAC exceeds goal by >25% for a single day
👉 Weekly Alert: 7-day rolling average CAC exceeds goal by >15%
👉 Monthly Alert: 30-day rolling average CAC exceeds goal by >10%
👉 Quarterly Alert: 60-day rolling average CAC exceeds goal by >5%
Note: As the timeframe extends, the tolerance for deviation decreases because long-term trends indicate systemic issues.
Response Protocols
For Daily Anomalies:
👉 Document in monitoring log
👉 Verify tracking is functioning correctly
👉 Check for one-time events (holidays, system outages, etc.)
👉 No corrective action unless pattern emerges
For Weekly Trends:
👉 Channel-specific analysis to identify problem areas
👉 Review recent campaign changes, creative updates, or landing page modifications
👉 A/B test new approaches while maintaining proven performers
👉 Implement cost-saving optimizations in underperforming segments
For Monthly Patterns:
👉 Comprehensive marketing audit
👉 Pause all experimental campaigns
👉 Shift budget to historically highest-performing channels
👉 Review customer journey and conversion funnel for leaks
👉 Evaluate competitor positioning and market changes
👉 Consider price or offer adjustments to improve conversion rates
For Quarterly Issues:
👉 Fundamental business model review
👉 Evaluate product-market fit
👉 Consider pivoting target customer segments
👉 Rebuild acquisition strategy from first principles
👉 Potential leadership or organizational changes
Prevention Measures
👉 Maintain diverse acquisition channels to reduce single-point vulnerabilities
👉 Establish regular creative refreshes to prevent ad fatigue
👉 Develop incremental testing strategy that limits exposure to unproven tactics
👉 Build a "break glass" reserve budget for quick response to successful channels
👉 Create regular competitive analysis schedule to stay ahead of market shifts
Measurement Framework
Track these metrics alongside CAC to diagnose issues faster:
👉 Channel-specific CAC
👉 Conversion rate by funnel stage
👉 Ad engagement metrics (CTR, view rate, etc.)
👉 Landing page performance
👉 Time-to-conversion
👉 CAC ratio
Success Indicators
You'll know your response is working when:
👉 Daily CAC fluctuations return to normal range
👉 7-day rolling average trends downward
👉 New customer quality metrics remain stable or improve
👉 ROAS on marketing spend increases
The goal isn't just to lower CAC, but to ensure you're acquiring the right customers at the right cost.