COST PER ACQUISITION (CPA) DEFINITION AND FORMULA

Find below the Cost Per Acquisition (CPA) definition and the correct formula to calculate CPA by eDigital.

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COST PER ACQUISITION (CPA) DEFINITION

Cost per Acquisition (CPA) Definition: The cost of acquiring a new customer.

COST PER ACQUISITION CPA FORMULA

Cost Per Acquisition (CPA) formula: Total Digital Marketing Channel Costs / Total New Sales from that Channel.

RELATED: THE ONLY  12 DIGITAL MARKETING METRICS YOUR BOSS CARES ABOUT

WHY COST PER ACQUISITION (CPA) IS AN IMPORTANT TO TRACK AND MEASURE

  • One of my top favourite digital marketing metrics.
  • It is a bottom-line metric that shows you which of your digital marketing channels are actually producing conversions (actual sales)
  • Attribution modelling is key to understanding other non-converting channels that might help other channels to bring new sales.

TIPS WHEN CALCULATING, MEASURING AND TRACKING COST PER ACQUISITION (CPA)

  • Calculate this CPA per Digital Marketing Channel: SEO, SEM (Adwords), Social Media, Affiliates, Email Marketing, Display Advertising, etc.

OTHER KEY METRICS

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Final note: Want to reduce customer acquisition costs and dependency on paid media? eDigital‘s marketing strategy training will unmercifully uncover what your marketing sucks at and show you how to build a marketing engine with channels and assets you fully own. The training will stir up lots of thinking and bring new ideas to activate new paths to conversion and boost CLTV effectively.

COST PER ACQUISITION (CPA) FORMULA

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best digital marketing metrics

best digital marketing metrics