Our research team analyzed recent marketing cost data across multiple industries to determine the average Customer Acquisition Cost (CAC) for small businesses. This metric measures how much it costs to acquire a new customer and is critical for understanding profitability, marketing efficiency, and scaling potential.
We reviewed 12 months of performance data from marketing studies, SaaS platforms, and industry benchmarks to identify CAC ranges for common small business sectors.
Customer Acquisition Cost represents the total sales and marketing spend required to bring in a new paying customer. The formula is:
CAC = (Total Marketing & Sales Expenses ÷ Number of New Customers Acquired)
The average CAC figures in this piece are based on industry benchmark ranges, using midpoint estimates for each sector rather than your own business’s actual customer acquisition data.
We have broken down a table outlining the Average CAC for small businesses based on industry.
Average CAC for Small Businesses – 2025
Industry | Avg. CAC | Primary Acquisition Channels | Notes |
Professional Services (law, accounting, consulting) | $500 – $1,200 | Referrals, Google Ads, SEO | Higher CAC due to competition and higher-value customers |
Home Services (contractors, landscaping, cleaning) | $250 – $750 | Google Local Ads, SEO, reviews | Local SEO reduces CAC significantly over paid ads |
E-commerce | $45 – $125 | Paid social, Google Shopping, and email marketing | CAC varies heavily based on niche competition |
Restaurants & Cafes | $15 – $45 | Local SEO, social media, loyalty programs | Low CAC but requires a repeat customer for profitability |
Real Estate Agents | $700 – $2,000 | Referrals, paid search, and networking | High CAC offset by large transactions |
Health & Wellness (gym, spas, dental) | $150 – $400 | Local SEO, paid search, referrals | SEO and referrals can dramatically cut CAC |
Key Findings from Our Research
- Local SEO is the CAC EqualizerAcross most small business types, organic search and Google Business Profile optimization consistently lowered CAC compared to paid ads alone.
- Referral Programs Yield the Lowest CACBusinesses with structured referral or loyalty programs had 20–40% lower acquisition costs than those relying solely on advertising.
- High-Ticket Industries Can Afford Higher CACReal estate and professional services maintain profitability with high CAC because customer lifetime value (CLV) is significantly larger.
- Paid Ads Deliver Speed, But at a CostPaid channels typically produce faster customer acquisition, but long-term reliance increases CAC over time if organic and referral channels are not developed.
Achieving Lower CAC in 2025
Lowering CAC comes down to choosing the right channels, measuring relentlessly, and iterating. In practice: double down on local SEO/Google Business Profile, build a referral engine, nurture email for retention and upsells, test lower-cost ad inventory, and track CAC by channel so budget flows to what converts. Then run continual CRO on landing pages and offers, and small wins compound.
If you’d like expert help dialing this in, whether as a short engagement while you build in-house or as a longer-term partner, that’s exactly what we do. We can audit your funnel, stand up the highest-ROI channels, and hand you a clean CAC dashboard you can maintain. For questions or to download a copy of this report, contact us here.
