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Shopify CAC Optimizer

January 3rd, 2025

This week, we’re excited to release a significant enhancement to our optimization toolkit: CAC Optimization. With this update, you can now choose to optimize your ad spend for either overall revenue or new customer acquisition, empowering you to make more strategic decisions at every stage of your marketing funnel. Whether you’re focusing on maximizing new customer acquisition across all channels or selectively optimizing specific campaigns for CAC instead of ROAS, this update gives you greater control over how your budget is allocated to meet your goals.

Key Updates at a Glance

Optimization Update: CAC Optimization

  • A new option, Scenario Target, is now available when creating an optimization scenario. You can choose between Revenue/ROAS or New Customers/CAC as your focus.
  • Upon selecting New Customers/CAC as your scenario target, the campaign selection menu updates to display spend and MMM New Customer/CAC attribution details at both the channel and campaign levels.
  • From there, the optimization flow mirrors the familiar Revenue/ROAS process and includes all the features you’re accustomed to. After running the optimization, you will see:
    • Impact Overview: The expected effect of the optimized spend recommendations on your MMM New Customers and CAC, both overall and at the channel/campaign level.
    • Spend Recommendations: Exact recommendations on how much to allocate to each campaign over the forecasted timeframe, the number of new customers that spend is expected to drive, and the corresponding CAC for those new customers.
    • Saturation Curves: Visualizations for each optimized campaign, showing how MMM New Customers and CAC shift with increases or decreases in spend.

Performance Page Enhancements: CAC Saturation Curves

  • The Forecasting Tab within the performance page drawers now includes an additional dropdown, allowing you to toggle between Revenue/ROAS and New Customers/CAC views.
  • New Customer/CAC saturation curves can be used similarly to Revenue/ROAS saturation curves, offering insights into the relationship between spend on a given campaign and the number of attributed new customers it generates.

Video Walkthrough

It’s important to note that this update applies only to revenue driven by your primary storefront (e.g., Shopify, SFCC, etc.). The optimization and generated curves do not include halo effects attributed to Amazon from your campaigns and are currently available only to organizations receiving CAC modeling. In the coming months, we will release new tools designed to optimize your spend for Amazon Revenue and New Customers. If you’re interested in helping us test these upcoming features, we encourage you to reach out.

We’re eager to hear your feedback! If you have any thoughts, questions, or suggestions, please don’t hesitate to share them with us.