13 Tips to Lower Your Client Acquisition Costs
Acquiring new customers isn’t just a challenge, it’s an expensive one. In fact, research shows it can cost anywhere from 5 to 25 times more to land a new client than to keep an existing one. And with digital ad prices climbing and competition for attention fiercer than ever, businesses are feeling the pinch. The real question isn’t whether you should lower your client acquisition costs (CAC)—it’s how to do it without sacrificing growth.
​
Here’s the good news: cutting CAC doesn’t have to mean cutting corners. It’s all about working smarter, not harder. For starters, data is your best friend. Businesses that dig into their analytics to figure out which marketing channels are driving the best results often find they can reallocate their budgets for maximum impact. Tools like Google Analytics 4 make it easier than ever to track performance and pinpoint where your marketing dollars are doing the most heavy lifting.
​
Another smart move? Focus on keeping the customers you already have happy. Loyal customers not only stick around longer, but often bring in new business through referrals, without the hefty price tag of traditional acquisition campaigns. Referral programs, loyalty rewards, and personalized experiences can all help you build stronger relationships while keeping CAC in check.
​
And let’s not forget about technology. Automation tools can take a lot of the grunt work out of client acquisition. From automated email campaigns to AI-driven lead scoring, these tools help you target the right people at the right time with minimal effort and maximum efficiency.
​
Lowering your CAC doesn’t have to feel like climbing a mountain. By using data, doubling down on retention, and embracing automation, you can stretch your budget further and grow smarter. After all, when it comes to acquiring new clients, it’s not just about spending less, it’s about spending better.
Focus on Referral Programs
​
One tactic I've found really effective for lowering client acquisition costs is focusing on referral programs. Instead of always pouring money into paid ads, we've seen huge success in encouraging our existing clients to refer new ones.
By offering incentives—whether that's discounts, special perks, or even small rewards—you create a win-win situation. Happy clients who already trust you are more likely to recommend your service, and the new leads come in at a lower cost than traditional methods.
It's also a great way to tap into a network of people who already trust the referrer's opinion, which boosts conversion rates. Plus, the relationship is more organic, so you're starting with a warmer lead.
So, in short, incentivizing referrals is a powerful, cost-effective strategy to grow your client base without breaking the bank.
Chief Executive Officer, PasciVite
Ready to Lower Your CAC?
Use the RR Method
​
As a founder of a global design agency, one tactic I consistently recommend to business leaders for lowering client acquisition costs is the RR method: Referral & Retain.
Focusing on existing clients is far more cost-effective than constantly chasing new ones.
You encourage happy clients to refer your agency to their network by delivering exceptional work and building strong, long-term relationships. This organic word-of-mouth marketing is incredibly powerful and significantly reduces the need for expensive advertising campaigns.
Simultaneously, retaining existing clients through proactive account management, consistent communication, and demonstrating ongoing value minimizes the cost of acquiring new business.
Founder & CEO, Tenet
Invest in Community-Driven Education
​
Investing in community-driven education. We've realized that when you take the time to educate people about the benefits of solar energy—before they're even thinking about making a purchase—it builds trust and positions your company as a go-to resource. Whether it's through hosting free webinars, offering in-person workshops, or creating valuable online content, education brings people in organically.
What's great about this approach is that it doesn't feel like a hard sell. People come to us because they're genuinely interested in understanding how solar works, how it can save them money, and how it's impacting the environment. By the time they're ready to take the next step, they already feel connected to your brand and are more likely to convert, making the sales process smoother and less expensive.
We've also noticed that once you start becoming a trusted source for education, people start referring their friends and family, not just because they're happy with your product but because they value the information you provided. It creates this organic pipeline where your marketing costs drop, and your reputation as a knowledgeable, helpful leader in your industry grows. This approach is all about long-term relationships, not just closing a sale. It's an investment in building credibility and trust, and in the solar industry, that's something that pays off big time.
Founder & CEO, Avail Solar
Competitors Aren't Waiting, So Why Should You?
Build Authority with Evergreen Content
​
I've found that building authority through targeted, evergreen content is one of the most effective tactics for lowering client acquisition costs. Instead of heavily relying on paid ads, we guide clients to create resources that address their audience's biggest pain points—articles, guides, and short videos packed with actionable insights. These assets continue attracting qualified leads long after publication, reducing the need for repeated ad spend. By speaking directly to people's real concerns and offering practical help upfront, you establish trust early. Over time, this "always-on" approach systematically lowers acquisition costs while building a solid, loyal customer base.
Owner, King SEO Services
Diversify Marketing Channels
​
I would recommend diversifying your marketing channels for lowering client acquisition costs (CAC). The way that we've managed to lower our CAC is by making sure that we are not too reliant on any one channel. Paid advertising works great for us in terms of acquiring new business, but going all in one channel would leave us so vulnerable to any changes. So for us, it was important to also invest in other channels such as organic search, email and social media outreach. It did create higher overhead costs to start with, but by investing in systems early we've managed to cut down our CAC by upwards of 70% over the last 12 months.
Founder & CEO, Ambition Digital
Seriously, Why Wait?
Re-Engage Previous Customers
​
In the business world, it's often easier and cheaper to get past customers back than to find new ones. This is known as "retargeting." Think about it like inviting an old friend for coffee. They already know you and your products, so you don't have to start from scratch.
Let's say you run an auto transport service. A customer used your service to move their car a year ago. Now, they might be planning another move. If you reach out to them with a friendly reminder of your service, they'll be more likely to choose you again. So, don't forget about your past customers. Keep in touch with them. Remind them of the great service you offer. It's a simple, cost-effective way to get repeat business.
Co-Founder, J&S Transportation
Target High-Intent Users
​
One great way to lower CAC is by focusing on high-intent users with good audience segmentation and retargeting.
Here's how it works:
1) Retargeting engaged visitors - depending on the channel, I've used Meta pixel, LinkedIn insight tag, and Google Ads remarketing tags to retarget users who visited high-intent pages (pricing, demo, sign-up) but didn't convert. These audiences already know the brand, they visited in the past, had initial engagement, so there's a higher chance of conversion.
2) Lookalike audiences - once I know which users convert, I use that data to build lookalike audiences. This helps us fish for new high-intent users at a lower cost than broad targeting.
The exact approach depends on the platform, but this approach combined with high-quality creative generally drives down CAC.
CEO, Managing Partner, and Co-founder, Galactic Fed
Form Referral Partnerships
​
Referral partnerships unlock sustainable lead generation by leveraging trusted relationships rather than paid advertising. Building strategic collaborations amplifies reach while reducing acquisition friction. Our company cultivates relationships with complementary service providers who refer clients needing specific solutions. Active partners receive tailored resources showcasing relevant case studies and clear value propositions, enabling them to have meaningful conversations with prospects before making introductions.
Partner-referred prospects move through the sales pipeline with greater momentum compared to cold outreach. The transferred trust accelerates decision-making while reducing the need for extensive validation typically required with marketing-generated leads. Strategic relationship building creates compounding growth effects over time. As partners gain confidence in your solutions, they naturally integrate your offerings into their recommendations, delivering pre-qualified opportunities that close faster and stay longer.
VP of Demand Generation & Marketing, Thrive Digital Marketing Agency
Run Circles Around The Competition
Streamline Marketing Outreach
​
A streamlined and targeted marketing outreach strategy leads to higher conversion rates, ultimately reducing your cost per customer. This has been my most effective tactic for lowering client acquisition costs, and I recommend it to other business leaders aiming for the same results.
The first step is refining your customer personas to ensure your marketing efforts reach the right audiences. Start by reviewing your mission, value proposition, and the key traits of your ideal customer, including the specific challenges they face that your product or service solves. From there, identify which segments are most likely to convert now, and target them with personalized outreach through email, social media, or paid ads.
As you refine your approach, consider not only new customers, but also past ones who can be re-engaged through retargeting campaigns. Converting a warm lead is often more cost-effective than winning over a cold one, allowing you to attract more customers with lower spend.
Leveraging technology can further enhance this strategy. Marketing automation tools help streamline personalized email sequences, while customer and campaign performance data provide valuable insights for refining your outreach. By delivering the right message to the right audience at the right time, you'll convert more leads with less investment—keeping your customer acquisition costs low.
President, Advastar
Adopt Hyper-Local SEO
​
An approach I often take to reduce the cost of acquiring clients is investing in hyper-local SEO strategies. Targeting specific geographic locations provides an opportunity to reduce your audience to the ones most likely to convert into actual paying customers, either prospects or customers.
Example: If you are a healthcare practice, target keywords with local intent, such as "best pediatrician in [city name]" or "family dentist near [neighborhood name]," make sure you are reaching out to people searching for services nearby you. Not only does this help you get conversion up, but it also cuts down spending on more general marketing without targeting the right audience.
We have had great success with this method for many of our customers without driving costs up. The ultimate way to do this is to build hyper-local SEO into your entire marketing strategy. I would definitely encourage business owners to adopt this method to reduce customer acquisition costs and achieve maximum ROI.
SEO and SMO Specialist, Web Development, Founder & CEO, SEO Echelon
Utilize User-Generated Content
​
User-generated content cuts client acquisition costs and builds trust. Authentic videos and posts replace expensive ads and create a direct link with potential clients. Customer feedback and testimonials spark genuine interest while reducing spending on production. An approach like this adds value and lowers overall risks.
My experience with video content showed improved client engagement. Replacing traditional ads with user content increased conversions and reduced marketing spending. Investing in genuine client stories and reviews creates meaningful connections with prospects while cutting costs. Simple, effective tactics help businesses save money and boost results.
UGC manager/Marketing manager, Rathly
Time to Get Seen and Found!
Optimize Landing Page Conversion
​
The fastest way to lower client acquisition cost is to increase your conversion rate on your landing page and enhance your reputation off of your website and social channels (3rd party).
Most people will focus on trying new ads, or even other ad channels, but they neglect what's on their landing page.
First, realize most traffic to your landing page will be on a mobile device.
When a user lands on your mobile landing page, ensure that it is designed beautifully but also addresses the clients pain points and your solution very clearly. Focus on benefits primarily with features as secondary on your website's hierarchy. I've been able to lower CAC by 3X when doing this, while still running the same exact ads on the same exact channels.
Next, in parallel, you want to make sure your third party reputation is stellar.
Now that people have seen our ad and clicked on your website, they are going to google you / your company to see what they can find.
-
Make sure all social media channels have recent posts with engagement. Just a little is enough to show you are alive.
-
Ensure your LinkedIn company profile is complete and shows you have people that work there. I refuse to speak to vendors that have no people that work for them on LinkedIn.
-
When I google your company, what comes up besides your own brand? Are there reviews about your product or service from other bloggers? If not, go get them. I need to find 3rd party validation about you. Every industry has a 3rd party website that reviews that industry. Whether it's G2, BBB, Google My Business, Yelp or Capterra. Find the website that appears at the top of google for your industry and never stop building reviews.
-
Lastly, Reddit now ranks #2 for basically every keyword search. Have someone start a Reddit thread about your company and nurture the discussion so that you look active on there.
CMO, REALLY
Offer Risk-Free Trials
​
Implement a risk-free trial or a money-back guarantee to lower the barrier for new clients. This reduces the perceived risk and encourages trials of your service. Make the sign-up process as simple as possible to increase conversions. Promote these offers prominently on all your marketing channels. Follow up with excellent customer service to convert trials into long-term clients. Such assurances can significantly boost client trust and reduce acquisition costs.
CEO, Hennessey Digital