Cost Per Acquisition (CPA)

• Metric
• Marketing
• Financial

The total cost of acquiring a new customer through a specific channel or campaign, divided by the number of new customers acquired.

Problem it addresses

Determining the financial efficiency of different marketing strategies and channels is essential for optimizing marketing spend. Without measuring CPA, companies might continue to invest in underperforming channels, diminishing the overall return on marketing investment.

How it helps

CPA provides a clear measure of the cost-effectiveness of marketing efforts in acquiring new customers. It helps businesses identify the most efficient channels and campaigns, allowing for better allocation of marketing resources. Lowering CPA while maintaining or improving the quality of acquisitions is key to maximizing marketing ROI and overall profitability.