Advertising
Cost Per Acquisition
Cost per acquisition (CPA) is the average cost to acquire one customer through a specific marketing channel or campaign. It measures the efficiency of marketing spend in generating actual conversions.
Examples
A paid social campaign generates 200 new customers at a total cost of $6,000, resulting in a CPA of $30 per customer.
Best Practices
Compare CPA against customer lifetime value to ensure your acquisition costs are sustainable and profitable.