The longer version
Most SMBs do not track CAC accurately. They know what they spent on ads but not on their own time, software, or content creation. Real CAC includes all of these. AI implementations help reduce CAC by automating high-leverage activities (lead qualification, follow-ups, content) so each marketing dollar produces more conversion. If your CAC is greater than 30-40% of LTV, growth becomes unsustainable.
Common questions
How do I calculate CAC?
Total marketing + sales spend (including your time at $50-100/hr) / new customers acquired in the period.
What is a good CAC for SMB service businesses?
Varies by industry. Dental: $50-200 per new patient. HVAC: $100-400. Med spa: $50-150.
How does AI reduce CAC?
Auto-followup recovers leads that would otherwise go cold. Auto-content compounds organic visibility. Both reduce CAC over time.
Need this implemented in YOUR business?
Take the 5-min audit. I'll tell you honestly whether this fits.
Get my free AI audit →