There are loads of digital marketing terms out there, but CPA or Cost Per Acquisition is a very important one! Knowing your CPA can help you increase your return on investment and implement more efficient and effective digital marketing strategies.
What is Cost Per Acquisition?
Cost Per Acquisition (CPA), is a metric used to determine how much it costs to acquire one customer. Once you know how much it costs to acquire one customer, you can then work to decrease your CPA and increase your revenue.
How Do I Work Out My Cost Per Acquisition?
To find out how much your CPA is, you can complete a simple calculation as follows:
Divide the total cost of your marketing campaign by the number of conversions.
The metric that you end up with will show you exactly how much you are spending per conversion. If this cost is too high, you should consider reworking your marketing campaign.
If you need any help lowering your CPA or are looking for more cost effective ways to implement a marketing Campaign – then just contact DigitUX.