Customer acquisition cost (CAC) is the total amount you spend to get one new customer. It includes advertising, marketing tools, promotions, and any other expense related to bringing a customer through the door for the first time. If you spend $500 on Instagram ads in a month and those ads bring in 50 new customers, your CAC is $10.
For local businesses, CAC varies widely by industry. A restaurant might have a CAC of $5-15 through social media. A dental practice might spend $200-400 per new patient through Google Ads. Understanding your CAC helps you know whether your marketing is working and what you can afford to spend.
Review posts on Instagram are one of the lowest-CAC marketing activities available. The content (the review) is free because your customer wrote it. The graphic takes seconds to create with Prizz. The post reaches potential customers organically. The only cost is your time, and with automation, that cost approaches zero.
Compared to paid advertising, review posts are a long game. They build trust slowly and consistently. But the cumulative effect of a feed full of positive reviews is a lower CAC over time because people arrive at your business already trusting you.
For the cheapest version of this, see how to promote your business on Instagram for free.