How to Reduce CAC with Hyvä Theme?

Mar 11th, 2025 12 min to read

Customer Acquisition Cost (CAC) is one of the most critical yet overlooked metrics in eCommerce. You might have a fantastic product, a well-optimized ad campaign, and a solid marketing strategy—but if you’re spending too much to acquire each customer, your profitability will suffer.

Many Magento store owners unknowingly inflate their CAC by running paid ads to slow, underperforming websites. If your store is slow, clunky, or unoptimized, your marketing spend is working against you. So, as a result, Ads cost more, conversion rates drop, and you keep increasing your Ad budget but don’t see the returns.

So, how can you decrease CAC without cutting your marketing spend?

In this guide, we’ll break down:

  • What’s an ideal CAC for e-commerce? (How do you know if yours is too high?)
  • Why is your CAC increasing? (The hidden impact of slow speed & poor UX)
  • How Hyvä fixes this problem (With real-world data & case studies)

By the end, you’ll understand why optimizing your website—not just your ads—is the key to lowering CAC and boosting profitability.

Let’s get started!

What is a Good CAC for eCommerce?

A “good” CAC for eCommerce depends largely on your business model, industry, and target audience. However, by examining industry averages, you can get a solid benchmark for your eCommerce store’s CAC.

CAC is the total cost your business incurs to acquire a single customer. The formula is straightforward:

Customer Acquisition Cost (CAC)

In other words, how much do you spend on ads, promotions, and outreach to gain one paying customer?

While your ideal CAC depends on multiple factors like Average Order Value (AOV), customer lifetime value (CLV), and your profit margins, understanding industry benchmarks can give you a good starting point.

Customer Acquisition Cost by Industry

Here’s a breakdown of the average CAC by industry for eCommerce stores:

Customer Acquisition Cost by Industry

While these figures provide a starting point, it’s essential to take into account other variables. For example, higher-value products (like electronics or luxury goods) may naturally have a higher CAC due to more expensive advertising and customer education costs.

But generally, a good benchmark is to aim for a CAC that is significantly lower than your customer lifetime value (LTV), ideally with a ratio of 3:1 or 4:1, meaning for every dollar spent acquiring a customer, you should expect to earn at least three dollars from them over their lifetime as a customer.

In the next section, we’ll explore why your CAC might be higher than it should be and how Hyvä Theme can help you lower it by improving website speed, performance, and UX.

What are the reasons behind Higher CAC?

If your Customer Acquisition Cost (CAC) is too high, you might be wondering—why it is costing more to bring in new customers? 

The truth is, high CAC isn’t always just about expensive ads. Several hidden factors might be working against you, draining your marketing budget without delivering the results you expect.

Let’s discuss them in detail.

1. Poor Website Performance (Speed & Load Times)

Speed is no longer just a convenience—it’s an expectation. Modern shoppers are impatient, and their tolerance for delays is shrinking fast. 

Research shows that 53% of users abandon a website if it takes more than three seconds to load, and a mere one-second delay can reduce conversions by 7%.

Website Performance Statistics

In fact, a Google study found that a 0.1-second improvement in load time can increase conversion rates by up to 8%.

Let’s say you’re running a Google Ads campaign. The system evaluates your landing page speed as part of its Ad Rank algorithm, meaning sluggish performance leads to a lower Quality Score. As a result, your Cost Per Click (CPC) increases, and you end up paying more just to get users to your site. 

Even worse, when visitors land on a slow page, many leave before it fully loads, leading to high bounce rates and wasted ad spend. It’s a double penalty—higher ad costs and fewer conversions.

Speed issues aren’t just limited to advertising performance; they also impact organic traffic. Google prioritizes Core Web Vitals as a ranking factor, meaning slower sites appear lower in search results, making them harder to find without paying for ads.

If your website isn’t loading in under two seconds, you’re not only spending more on customer acquisition but also losing out on free, organic visitors who could have reduced your CAC naturally.

2. Ineffective UX/UI = Lower Conversions

A fast website is a great start, but speed alone isn’t enough. If your store is hard to use, visitors will still leave. Complicated navigation, a messy design, and a frustrating checkout process all make it harder for shoppers to buy. 

Your website is a digital storefront. If customers walk into a physical store where products are scattered, checkout lines are long, and signage is confusing, they’ll leave without buying anything. The same logic applies to eCommerce. 

Mobile shopping experience is even more important. Over 60% of online shoppers use their phones to browse, yet many eCommerce websites still deliver a subpar mobile experience. 

Mobile shopping statistics

Tiny buttons, unreadable text, and intrusive pop-ups frustrate users, leading to premature exits. Every visitor lost due to poor UX/UI is an opportunity wasted—and the more visitors you lose, the higher your CAC climbs.

Another often-overlooked factor is checkout friction. According to the Baymard Institute, the average cart abandonment rate is a staggering 69.99%, and a significant portion of this stems from frustrating checkout experiences. Long forms, unexpected fees, and forced account creation push users away right at the final step. 

If your website makes checkout difficult, you’re essentially throwing ad dollars down the drain by attracting customers who never complete a purchase.

3. Bad Ad Performance Due to Poor Quality Score

Many brands focus on Ad creatives and targeting but forget about the landing page experience—a HUGE mistake! 

Google and Meta don’t just look at your bid amount when deciding where to show your ads. They also consider how good your landing page is. Quality Score is a Google Ads metric that determines Ad ranking and CPC. 

The formula is simple:

  • Higher Quality Score = Lower CPC + More Ad Impressions
  • Lower Quality Score = Higher CPC + Fewer impressions

If your website is slow, outdated, or confusing, your Quality Score drops—leading to higher CPC and fewer ad impressions. A low Quality Score can make ads 16% more expensive and force you to spend more just to get the same results.

For example, if your ad normally costs $1.60 per click, but a poor Quality Score pushes it up to $2 per click, that’s a 25% increase in ad costs. Multiply that by thousands of clicks, and you’re losing thousands of dollars just because of a slow website.

Meta (Facebook & Instagram) follows a similar approach. Ads that lead to fast, engaging landing pages tend to get better placement and lower CPCs, while those leading to slow, clunky pages face higher costs and fewer impressions. If your site is underperforming, you’ll be forced to increase Ad spend just to maintain traffic levels, pushing your CAC even higher.

Many eCommerce brands assume that high CAC is just the cost of doing business. In reality, most acquisition inefficiencies stem from site-related issues rather than marketing strategy.

When these problems are addressed, the impact is profound:

 ✅ Faster sites reduce bounce rates and improve conversion rates
✅ Better UX/UI increases customer retention and lowers acquisition costs over time
✅ Higher Quality Scores decrease ad costs and improve campaign efficiency

This is exactly where Hyvä Theme plays a heroic role and fixes all your problems.

Let’s see how!

How Hyvä Theme Fixes These CAC Problems?

Understanding the causes of high Customer Acquisition Cost (CAC) is only half the battle—the real challenge lies in fixing them, which seems impossible with the traditional Magento themes (e.g., Luma).

Don’t worry, as you’ve access to the Hyvä Theme and other Hyvä solutions for your website. Hyvä is built from the ground up to address the core inefficiencies that drive up CAC.

Here’s a closer look at how Hyvä Theme solves the biggest CAC problems:

1# Hyvä Optimizes Speed

Hyvä achieves this speed boost by completely reengineering Magento’s frontend. 

Unlike traditional Magento themes, which rely on a bulky and outdated Luma framework, Hyvä is built using a lightweight, modern approach that removes unnecessary JavaScript, optimizes rendering, and ensures ultra-fast load times.

Hyvä Optimizes Speed

Here are the key improvements Hyvä brings to speed and performance:

Minimal JavaScript for Instant Loading

The default Magento Luma theme is packed with dozens of JavaScript libraries (such as RequireJS and KnockoutJS) that slow down the browser. Hyvä removes this clutter and replaces it with Alpine.js, a lightweight framework that keeps only the essential scripts, reducing load time significantly.

Reduced HTTP Requests = Lower Latency

Every time a customer visits a website, their browser requests multiple assets (images, scripts, stylesheets) from the server. More requests mean slower load times. Hyvä dramatically reduces the number of HTTP requests compared to Luma, ensuring that pages load faster, even on mobile networks.

Optimized Rendering and Faster Time to First Byte (TTFB)

A slow server response time can make even a well-optimized frontend feel lifeless. Hyvä works seamlessly with caching strategies, CDNs (Content Delivery Networks), and efficient database queries to minimize server lag. The result is a significantly lower Time to First Byte (TTFB), meaning the page starts loading almost instantly.

Better Google Core Web Vitals = Lower CPC in Ads

Google’s Core Web Vitals—which measure loading speed, interactivity, and visual stability—directly influence how your website ranks in search results and how much you pay for ads. Hyvä’s highly optimized structure ensures that your store achieves top scores, leading to higher organic rankings and lower ad costs.

Ultimately, Magento stores switching to Hyvä often see up to 70% faster load times. This directly translates to higher ad efficiency, lower bounce rates, and reduced CAC.

Check out the Official Hyva Theme Demo!

2# Hyvä Enhances UI/UX

Even the fastest website won’t convert visitors if the user experience is up to the mark. 

By replacing slow, outdated frontend structures with modern, lightweight technologies, Hyvä creates an online shopping experience that is fast, visually appealing, and highly customizable.

Here’s how:

A Blank Canvas for Full Creative Control

People who know Hyva well are aware that the Hyvä theme starts as a blank slate. While this might initially seem like a drawback—since it requires designing everything from scratch—it’s actually one of Hyvä’s biggest strengths. 

Why? Because it gives developers and designers complete creative freedom. Instead of being confined to predefined layouts, store owners can craft a UI that perfectly aligns with their brand’s vision.

Hyvä UI: Designing with Purpose

Hyvä UI

Hyvä doesn’t leave merchants entirely on their own. To bridge the gap between flexibility and efficiency, it offers the Hyvä UI Components Library—a collection of pre-designed elements that can be easily integrated into any Hyvä-powered store. 

This library, delivered as a Figma file, contains ready-to-use components like buttons, navigation menus, product cards, and checkout elements. These elements ensure that even without a predefined theme interface, store owners can quickly create professional, visually cohesive designs that maintain a consistent look across the entire site.

Learn more about Hyvä UI.

InstaBuild: Rapid Deployment with Hyvä

InstaBuild - Ready-to-use Hyvä templates

For businesses that want to launch quickly without compromising on quality, InstaBuild provides ready-to-use Hyvä templates that drastically cut down the time required to set up a store. These templates are built following best UI/UX practices, ensuring that merchants get a well-optimized site without having to start from scratch.

Since these templates are designed specifically for Hyvä, they are already optimized for speed, SEO, and mobile responsiveness. 

As a result, you can quickly deliver a functional, aesthetically pleasing site that works well across devices and meets the expectations of today’s consumers. This not only benefits in terms of time-to-market but also ensures that your customers enjoy a seamless experience from the moment they land on the site.

Mobile-First Design for Seamless Accessibility

Hyvä takes a mobile-first approach to UI/UX design. Instead of retrofitting desktop designs to fit smaller screens, it starts with mobile layouts first. This ensures that the shopping experience is smooth, intuitive, and fully functional on all devices. 

This approach eliminates common issues like slow mobile load times, distorted layouts, and hard-to-click buttons, making browsing effortless regardless of screen size.

Moreover, because Hyvä has fewer dependencies than traditional Magento themes, its lighter codebase leads to even faster load times on mobile devices. This is crucial, as mobile users are often on slower network connections and expect websites to load quickly, even when they’re on the go.

Thus, Hyvä isn’t just another Magento theme—it’s a fundamental shift in how eCommerce UI/UX is approached. 

Read more: How Does Hyvä Theme Help Improve UI/UX?

Final Takeaway!

Cutting down your Customer Acquisition Cost (CAC) isn’t just about refining Ad campaigns—it’s about fixing what happens after the click. 

A slow, unresponsive, or poorly optimized website silently drains your marketing budget and makes every ad dollar work harder for fewer results. So, if your CAC is too high, fixing your website speed & UX is the smartest way to lower it.

Hyvä is the best Magento theme for performance optimization. But a powerful theme alone isn’t enough. To unlock Hyvä’s full potential, you need the right development team—one that understands performance optimization, seamless UI/UX implementation, and how to tailor Hyvä to your store’s unique needs.

🔹 Want to reduce CAC and scale profitably?
🔹 Curious if Hyvä is the right fit for your store?

Let’s TALK!! 

Book a free consultation with our Hyvä experts today!

Sagarika Das
Content Marketer (eComm. & SaaS)
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