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May 29, 2025
Watermark Water Cooler: Breaking Down Client Acquisition Cost
What does it really cost to land a new client? , Cameron sits down with Lane, one of Watermark’s digital specialists, to break down one of the most overlooked metrics in the : client acquisition cost (CAC).
They unpack what CAC is, why it’s critical to business sustainability, and how understanding it can help general contractors and business owners make smarter, more scalable decisions with their marketing budgets.
What is client acquisition cost (CAC) — and what’s considered healthy?
— from paid advertising to CRM tools to sales team labor. Lane explains that for contractors, CAC should ideally land between 20–30% of total job profit. Anything higher can start to eat into margins and signal inefficiencies in the sales and marketing process.
Why CAC is often higher than it should be — and what’s causing it
Many businesses overspend because they don’t understand where their leads are coming from — or worse, they don’t track it at all. Without attribution or a functioning CRM, it’s impossible to identify which campaigns are working. Poor website performance, misaligned ads, or an unclear sales funnel all contribute to rising CAC.
How to lower CAC through better targeting and smarter marketing
Reducing CAC starts with improving efficiency. Lane highlights tactics like better Google Ads optimization, refining SEO strategy, and improving website performance to ensure that every marketing dollar is pulling its weight. Clear attribution allows marketers to double down on what works and cut spend where it isn’t delivering results.
The role of attribution and CRM in calculating true acquisition cost
Without a CRM and proper tracking, you’re flying blind. Lane and Cameron stress the importance of , how they move through your pipeline, and whether they convert — data most contractors simply don’t have. A good CRM (like HubSpot) provides clarity, showing not just lead volume, but revenue impact by channel.
The danger of spreading budgets too thin (or spending blindly)
Lane shares that a common mistake is running ads across too many platforms without the budget to make an impact on any of them. Others overspend on one platform (like Google Ads) without evaluating actual return. Instead, businesses should and reallocate the budget accordingly.
Why CAC is critical to growth, especially in today’s economy
As the market fluctuates and costs rise, knowing your CAC gives you control over your growth. Understanding the cost per client allows you to set realistic revenue goals, scale your pipeline, and make data-backed decisions. It also helps identify when it’s time to invest more — or when to shift strategy entirely.
Final takeaway
Don’t sleep on CAC. It’s one of the most important numbers in your business — and one that too many contractors ignore. With the right tools, systems, and strategy, you can lower acquisition costs, boost revenue, and scale smarter.
to the Watermark Watercooler for more practical marketing insights built for the construction and AEC industries.
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Apr 7, 2025
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