| CPA |
| Cost per Acquisition |
Cost per acquisition (CPA) is a measure of the cost of acquiring a customer through advertising or other promotional efforts. |
| CPA is an important metric for businesses because it helps them understand the efficiency of their advertising and promotional efforts. A high CPA may indicate that the company is spending too much to acquire new customers, while a low CPA may indicate that the company is efficiently acquiring new customers through its advertising campaigns. By tracking CPA over time, businesses can identify trends and make adjustments to their advertising strategies to optimize their customer acquisition efforts. |
How to Calculate: |
It is calculated by dividing the Total Cost of an Advertising Campaign (TC) by the Total Number of Customers Acquired (TCA) during that campaign. |
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| For example, if a company spends $10,000 on an online advertising campaign and acquires 100 new customers as a result, its CPA would be $100 ($10,000 / 100 customers). |