What is a Cost per acquisition?
Cost per Acquisition (CPA) is a metric that measures the average cost of acquiring a new customer through marketing efforts. It directly impacts profitability by determining the efficiency of customer acquisition campaigns. By analyzing CPA, you can identify which channels, campaigns, or strategies are the most cost-effective in acquiring customers to allocate budgets more efficiently and optimize marketing spend. Optimizing CPA involves testing different channels, refining targeting criteria, and improving conversion rates to reduce acquisition costs while maximizing the number of acquired customers. Ultimately, mastering CPA leads to higher return on investment (ROI), improved marketing efficiency, and sustainable business growth.
How to calculate Cost per acquisition?
Calculate cost per acquisition by dividing the total cost of acquiring customers (marketing expenses) by the total number of customers acquired within a specific period.
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