2025 has arrived with a bang for B2C marketers — and not the good kind. Acquisition costs are rising, margins are shrinking, and consumers are more cautious than ever. According to Klaviyo’s 2025 State of B2C Marketing report, 73% of B2C marketers report an increase in customer acquisition costs (CACs). And with global economic pressures and evolving data privacy regulations, it’s clear this isn’t a short-term glitch, it’s the new normal.
But amid the uncertainty, there’s also opportunity.
At Bubble, we’re working with brands to future-proof their growth by shifting the focus from volume-based acquisition to sustainable, loyalty-driven marketing. Here’s what’s going on — and how your brand can respond.
What’s Behind the Rising CAC?
There’s no single cause — it’s a perfect storm of marketing headwinds:
- Economic Volatility: Global inflation, tariffs, and increased fulfilment costs are pushing up prices across the board.
- Privacy Regulations: Tighter data laws are restricting third-party tracking, making targeting more complex and less efficient.
- Platform Saturation: Paid channels like Meta and Google are more competitive and expensive than ever.
The result? B2C brands are spending more to win less, and it’s hitting margins hard.
The Retention Opportunity (That Most Brands Are Missing)
Incredibly, despite the obvious shift in consumer behaviour, only 14% of marketers say customer retention is their top priority.
That’s a huge gap, and a powerful opportunity.
Retention isn’t just about holding onto customers; it’s about increasing lifetime value, improving return on marketing spend, and creating a brand that people advocate for. And in a climate where acquisition is harder to scale, retention becomes your most cost-effective growth lever.
Strategies to Combat Rising CAC and Improve Retention
If you’re feeling the squeeze, here’s where to start:
1. Invest in First-Party Data and Segmentation
With third-party data becoming less reliable, now’s the time to focus on zero-party and first-party data strategies. Use tools that integrate seamlessly with your CRM and ecommerce platforms to collect preferences, behaviours, and engagement history.
Then, build segmented journeys tailored to these insights:
- Target lapsed buyers with timely re-engagement campaigns
- Reward high-LTV customers with exclusive offers
- Personalise content based on purchase history or on-site behaviour
2. Double Down on Lifecycle Marketing
Marketing shouldn’t stop at checkout. Build automated flows that nurture relationships post-purchase, such as:
- Onboarding sequences for new customers
- Replenishment reminders or “buy again” nudges
- Loyalty incentives for repeat purchases
3. Create High-Value, Content-Led Experiences
Rather than shouting louder, offer more value. This can be done through:
- Educational content that helps customers make informed decisions
- User-generated content (UGC) that builds social proof
- Branded communities that deepen engagement and trust
4. Streamline Your Tech Stack
The report also notes that marketing teams are using more tools than ever, creating fragmentation and inefficiencies. Consolidate where you can. Opt for platforms that unify email, SMS, analytics, and data capture, and make sure your agency partners know how to leverage them properly.
At Bubble Marketing, we specialise in creating integrated marketing ecosystems that reduce cost, simplify reporting, and improve campaign performance.
The Bottom Line
CACs are rising. Retention is underused. Marketing complexity is increasing.
But smart B2C brands are responding not by spending more, but by spending smarter.
If you’re ready to realign your marketing strategy around lifetime value, personalisation, and ROI you can prove, we’re here to help. From lifecycle campaigns to platform optimisation, Bubble partners with growing brands to build marketing strategies that last.
Let’s talk about the future of your marketing in a FREE discovery call.