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Customer Acquisition Cost

Customer Acquisition Cost
Examples.

Updated

Talking about CAC in the abstract is easier than knowing whether yours is good. Below are illustrative CAC examples by subscription category, with the kind of LTV they need to clear to make the math work. Treat these as rough order-of-magnitude reference, not benchmarks — every brand's numbers are specific to its mix.

Example 1: vitamin and supplement subscription

  • AOV per cycle: $35
  • Typical CAC: $50–90 (paid social heavy, some search)
  • Required LTV: ≥$150–270 for healthy LTV:CAC of 3:1
  • Average customer tenure needed: 4–8 cycles

Works when retention is strong; breaks when first-cycle churn is above 40%.

Example 2: coffee subscription

  • AOV per cycle: $25
  • Typical CAC: $30–60
  • Required LTV: ≥$90–180
  • Average customer tenure needed: 4–7 cycles

Lower AOV demands lower CAC; usually heavy on referral and content channels to keep the math working.

Example 3: premium curation box

  • AOV per cycle: $80
  • Typical CAC: $120–250
  • Required LTV: ≥$360–750
  • Average customer tenure needed: 4–10 cycles

Higher CAC is sustainable because each cycle is worth more — but only if curation stays interesting enough to retain past month 3.

Example 4: pet food / replenishment

  • AOV per cycle: $50
  • Typical CAC: $60–120
  • Required LTV: ≥$180–360
  • Average customer tenure needed: 4–8 cycles

One of the strongest retention categories in DTC subscription — pet food churn rates are typically the lowest among DTC subscriptions.

Example 5: B2B SaaS-style subscription on Shopify

  • AOV per cycle: $200/month
  • Typical CAC: $400–1,500 (sales-led)
  • Required LTV: ≥$1,200–4,500
  • Average customer tenure needed: 6–24 months

Very different math — B2B can sustain much higher CAC because annual contracts and slower churn compound LTV. See customer acquisition cost SaaS for a deeper look.

What examples cannot tell you

Industry averages are starting points, not goals. Your actual CAC depends on your channel mix, brand strength, creative quality, audience targeting, and product-market fit. Your actual LTV depends on retention. The only number that truly matters is your own LTV:CAC ratio — see LTV:CAC.

Frequently Asked Questions

What is a typical CAC for a DTC subscription business?

Heavily category-dependent. Low-AOV categories (coffee, basics): $30–60. Premium replenishment (supplements, beauty): $60–150. High-AOV curation: $150–400. The absolute number matters less than the ratio to LTV.

Why does CAC vary so much by category?

Three reasons: audience cost differs (pet owners vs. coffee drinkers vs. premium beauty cost different amounts to reach), conversion rates differ by category, and LTV varies — categories with longer retention can afford higher CAC.

How do I know if my CAC is too high?

Compare to your LTV. If LTV:CAC is below 3:1, CAC is likely too high (or LTV is too low). If it is above 5:1, you may be under-investing in growth.

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