Customer acquisition metrics measure how many new customers a business acquires and the costs associated with acquiring them. They help assess the performance of an acquisition model.
In 2026, companies continue to track acquisition metrics as part of assessing their marketing efforts, as changes in platforms and user behavior can affect how customer journeys are measured. HubSpot’s 2026 "State of Marketing Report" found that nearly 30% of marketers reported a decrease in search traffic as consumers turn to AI tools.
Organizations often review multiple acquisition-related data points. They select metrics that align with their goals and reporting needs. This guide shares the most common customer acquisition metrics, including benchmarks and examples of how to interpret them.
Customer acquisition metrics
- Customer acquisition cost (CAC)
- Customer lifetime value (CLV)
- CAC-to-CLV ratio
- Acquisition rate
- Return on advertising spend
- Click-through rate (CTR)
- Customer retention rate
- Churn rate
- Net revenue retention (NRR)
- Cost per acquisition (CPA)
- Time to conversion
1. Customer acquisition cost (CAC)
Customer acquisition cost (CAC) measures the cost of converting someone into a customer. CAC includes all direct and indirect costs of acquiring a customer, including sales team fees, advertising spend, discounts, and subscriptions for marketing automation software.
CAC = (sales and marketing costs + wages + overheads ) / customers acquired
Industry benchmarks vary widely depending on the dataset and industry. First Page Sage benchmarks show average ecommerce CAC ranging from $53 for food and beverage to $175 for home goods.
CAC is a commonly used metric for evaluating acquisition efficiency and sustainability. Businesses use CAC to assess whether spending is aligned with revenue, especially as paid acquisition costs rise and marketing teams face greater pressure to deliver measurable growth.
2. Customer lifetime value (CLV)
Customer lifetime value (CLV) is the total value a customer brings to a business over the lifetime of the relationship. It's the sum of all purchases, calculated by multiplying the average order value (AOV) by annual order frequency, and multiplying the result by the number of years the customer relationship spans.
CLV = Average order value × Annual purchase frequency × Customer relationship lifespan (years)
According to benchmarks from Decile, the average annual revenue per customer across ecommerce verticals is:
- Home Goods: $325
- Fashion & Apparel: $263
- Health & Beauty: $306
- Food & Beverage: $169
- Supplements: $241
With CLV, businesses can identify the most profitable customer segments and use that information to guide resource allocation decisions.
If you drive 500 new customers through the acquisition model, for example, a CLV of $360 would predict $180,000 in revenue. Use these projections in stakeholder discussions about marketing performance and budget planning.
3. CLV-to-CAC ratio
CAC and CLV are two common metrics. Examined together, the ratio helps assess whether customer acquisition is efficient over time.
For example, acquiring a customer for $100 who generates only $50 in lifetime revenue would indicate an unfavorable ratio. A campaign could increase new customer volume and still reduce long-term revenue efficiency.
CLV:CAC ratio = Customer lifetime value / Customer acquisition cost
Decile reports these CTV:CAC ratios:
- Home Goods: 4.3
- Fashion & Apparel: 2.1
- Health & Beauty: 1.4
- Food & Beverage: 3.2
- Supplements: 2.5
The CAC-to-CLV ratio can also support analysis of a retailer’s return on investment (ROI) analysis and channel comparison. For example, a business may find that Google Ads has a CAC of $50 and Pinterest has a CAC of $30.
However, a deeper analysis may show that Google Ads customers have a CLV of $350, yielding a CLV:CAC ratio of 7:1, while Pinterest customers have a ratio of 3:1. In that case, Google Ads would be associated with a higher lifetime value relative to acquisition cost in this example.
4. Acquisition rate
Acquisition rate is the percentage of your audience on a particular marketing channel who become customers.
Acquisition rate = (Number of new customers / Total audience reached) × 100
If 20,000 website visitors were reached through TikTok during the month and 900 of them made a purchase, the TikTok acquisition rate would be 4.5%.
This metric shows the share of people reached through a channel who become customers. Channel metrics such as views, likes, and comments do not on their own show how many people completed a purchase.
A low acquisition rate can indicate a mismatch between the channel, message, offer, or customer journey. For example, the offer promoted in the channel may differ from what users find when they reach the site.
It may also suggest that the call to action (CTA) is not prompting enough users to continue to the site. In some cases, it can point to friction in the website conversion flow, where users click through from the channel but do not complete a purchase.
5. Return on ad spend (ROAS)
Return on advertising spend (ROAS) is a financial metric that tells you how much revenue you generate for every dollar spent on advertising.
ROAS = Revenue from ads / Cost of ads
ROAS benchmarks vary by business model, margins, and channel. Overall, Triple Whale’s analysis of more than 18,000 ecommerce brands in 2025 found that the average ROAS for Google Ads was 3.68.
A low or negative ROAS does not always mean the campaign lacks value. Comparing ROAS with customer lifetime value can help show whether acquired customers may become profitable over time through repeat purchases.
ROAS can change when advertising platforms, attribution methods, or privacy settings change. Bushbalm, for example, reported a 20% year-over-year decline in ROAS alongside attribution challenges. The company used Shopify Audiences to build custom audience lists for campaigns aimed at acquiring new buyers, and reported a 24% higher ROAS for those campaigns.
"Shopify Audiences has consistently outperformed our best campaigns by 20-30%," said Bushbalm's cofounder, David Gaylord. "Sustained results across several three-week campaigns and inflight ad performance measurement has helped us to invest in the right areas."
6. Click-through rate (CTR)
Click-through rate is the percentage of people who clicked a specific link out of the total number of people who saw it (impressions).
CTR = (Clicks / Impressions) × 100
Standard CTR benchmarks vary by channel:
- Google Ads: 6.11%
- Facebook ads: 1.9%
- Email marketing: 1.69%
- Website: Between 1.4% and 3.2%
Businesses measure CTR across stages of the customer journey, from initial brand awareness through first purchase, including the channels used at each interaction.
Here's a hypothetical look at what that might look like:
- 0.95% click your product listing ad in Google Shopping results.
- Once they land on your website, 2.3% complete the email pop-up form to receive a discount code.
- 16.7% click the discount link in your welcome email.
- 4.5% of app users click the push notification to tell them about a new product drop.
- 0.5% of retargeted website visitors click the link in your Facebook retargeting campaign.
Average CTR by channel can be compared with internal performance data. For example, if the average CTR for a Facebook retargeting campaign falls between 0.62% and 1.61%, a 0.5% CTR is lower than that referenced range.
This suggests an opportunity to revise the campaign. Possible revisions could include changes to audience targeting, copy, or ad format.
7. Customer retention rate
Customer retention rate measures the percentage of customers who continue purchasing from your business over a specific period.
Retention rate = ((Customers at end - New customers) / Customers at start) × 100
Average customer retention rates vary by industry, ranging from 30% for ecommerce to 84% for professional services.
Customer retention is closely related to CLV. A higher retention rate means customers generate more revenue over time, creating a compounding effect on profits. It also affects how a business allocates its budget between acquisition and testing efforts.
Businesses falling below these benchmarks can implement retention strategies like:
- Loyalty programs
- Branded communities
- Proactive customer support
- Retargeted post-purchase emails or SMS
- Exceeding customer expectations
8. Churn rate
Churn rate measures the percentage of customers who stop purchasing from your business over a specific period.
Churn rate = (Customers lost during period / Total customers at start) × 100
For subscription ecommerce, Recurly’s benchmark data shows a median churn rate of 7.02% overall, with digital subscription ecommerce at 6.63% and physical subscription ecommerce at 10.11%.
High or rising churn can suggest issues with product quality, customer service, pricing, or the overall value proposition. Many businesses track churn monthly to monitor changes over time. Small reductions in churn can also contribute to revenue growth over a longer period.
9. Net revenue retention (NRR)
Net revenue retention (NRR) measures revenue stability from an existing customer base. It accounts for both churn and expansion. To calculate your NRR, you’ll need to make sure you know your monthly recurring revenue (MRR).
NRR = (Starting MRR + Expansion MRR - Churned MRR) / Starting MRR × 100
A 2025 Benchmarkit software-as-a-service (SaaS) benchmark report put median NRR at 101%, suggesting that, for many private SaaS companies, retained and expanded revenue only slightly outpaced lost revenue.
Expansion revenue occurs when customers increase their spending over time. They might upgrade to a higher tier or buy complementary products. SaaS businesses drive this growth by providing tools that solve new problems as their customers scale.
10. Cost per acquisition (CPA)
Cost per acquisition (CPA) measures the total cost to acquire a customer through a specific marketing action or campaign.
CPA = Total campaign cost / Number of acquisitions
There is no universal CPA benchmark across all marketing channels and business models. CPA varies by industry, platform, conversion definition, and channel benchmarks.
CPA shows granular, channel-specific data that overall customer acquisition cost can’t capture. Track CPA for each campaign and channel to identify where acquisition dollars work hardest. This data helps optimize marketing efforts and allocate budgets.
11. Time to conversion
Time to conversion measures the average duration between a customer's first interaction with your brand and their first purchase.
Time to conversion = Purchase date - First touchpoint date
Conversion timelines vary by channel, price point, and buying complexity. The most useful benchmark is a business’s own historical baseline segmented by channel, product category, and new versus returning customers.
Tracking how long it takes customers to convert helps you adjust campaign duration and budget. Monitor these timelines by channel to set attribution windows. A channel where customers take 45 days to convert needs a different measurement approach than one where they convert in three days.
How metrics interconnect
Reading customer acquisition cost (CAC), lifetime value (LTV), and churn together gives a fuller view of customer acquisition.
A low CAC can look strong on its own. Paired with high churn and low LTV, it can also mean you’re bringing in customers who don’t stay. A higher CAC paired with strong retention and high LTV points to a model that can support profitable growth.
These metrics also help explain what may be happening across the funnel. Higher click-through rate (CTR) and conversion rates can lower CAC because more of your marketing spend turns into customers. Better retention and more frequent orders can raise LTV. A cohort with high CAC and net revenue retention (NRR) above 110% may perform better over time than a low-CAC cohort that churns fast.
The same relationships can help pinpoint where the issue sits. Low acquisition despite strong CTR can point to a conversion problem on your site. High churn with low CAC can mean the targeting is off. Strong retention with declining acquisition can point to saturation in existing channels.
Tracking and optimizing key metrics
Understanding industry benchmarks helps you set realistic goals and optimize your customer acquisition and experience strategy.
Customer acquisition costs vary by industry because of competition, market trends, and regulations.
It’s more useful to know your normal and track how key performance indicators (KPIs) like CLV, monthly recurring revenue (MRR), and return-on-investment change over time.
Advanced data analytics and business intelligence (BI) tools are indispensable for tracking these KPIs and how they fluctuate based on changes to your customer acquisition model.
Shopify tracks this data in your admin with no manual setup required. You’ll also see how your KPIs compare with industry benchmarks, which can help you spot areas for improvement.
Compare all of your most important acquisition metrics without leaving your Shopify admin. The Analytics tab pulls data from all sales channels to show key customer acquisition metrics at a glance, and benchmark certain data points against others.
Minimizing customer acquisition cost
Marketing platforms are limiting how brands interact with followers to push them toward paid ads. At the same time, the volume of similar products on the market means brands need a clear way to stand out.
Use these methods to reduce the cost of acquiring new customers:
- Optimize marketing campaigns. Shopify Audiences helps you build custom audience lists of the most interested buyers across the channels with the most reach, helping brands reduce CAC by up to 50% and increase retargeting conversions by up to 200%.
- Implement a customer referral program. Turn customers into brand advocates with a referral program that incentivizes them to market for you. The only cost you'll incur is the incentive.
- Invest in conversion rate optimization (CRO). Conduct an audit to find bottlenecks that cause visitors to leave. Fixing navigation, adding social proof, or using Shopify Checkout can increase performance. Shopify Checkout performs up to 36% better than competitors.
- Adopt new technologies. For example, Shop Campaigns has already helped leading brands like Caraway, Blueland, and Makari acquire new customers through the Shop app at a controlled cost.
- Create partnerships. Lean on the influence of other creators and brands to reduce customer acquisition costs. Take Duradry, the deodorant brand that used Shopify Collabs to invite 250 creators to join its community and post about it on social media. The brand saw a 29% reduction in CAC and drove more than $50,000 in product sales.
Measuring customer acquisition success
Customer acquisition isn't an exact science; it's a series of experiments. It takes trial and error to figure out which channels, messages, and promotions drive the most valuable customers—those who don't need a huge outlay to acquire, but who will drive long-term revenue for your brand.
Luckily, you don't have to be a data scientist to unveil these metrics for your business. Shopify Analytics collects data across all sales channels—including your online store, social media storefronts, marketplace listings, and physical stores—to calculate customer acquisition metrics.
You can even slice and dice the data by channel to pull detailed insights, and build your own custom explorations to monitor key metrics and prove your value to stakeholders.
Read more
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- Ecommerce Customer Journey Maps 101 (2025)
- Reduce Abandoned Carts with Buy Now Pay Later
Customer acquisition metrics FAQ
What is the customer acquisition metric?
There are multiple metrics that businesses use to measure the effectiveness of their customer acquisition model, including customer acquisition cost (CAC), customer lifetime value (CLV), and the relationship between the two metrics.
What is the KPI for customer acquisition?
The customer acquisition cost (CAC) to customer lifetime value (CLV) ratio helps you determine whether you'll turn a profit on each new customer throughout their lifetime. It dictates how profitable your acquisition strategy is.
What 3 metrics best measure customer success?
- Customer churn rate
- Repeat purchase rate
- Customer lifetime value
How do you measure acquisition?
Customer acquisition cost shows how much you'll spend to acquire a new customer. Compare this against the lifetime value of each customer to figure out whether you're spending more on acquisition than you'll generate in revenue.
What are good CAC metrics?
The ideal CAC-to-LTV ratio is 1:3. This means that for every dollar you spend acquiring a new customer, they'll bring $3 in revenue over their lifetime.


