Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) is a marketing metric that calculates the cost of acquiring a new customer. Unlike Cost Per Lead (CPL), which measures the cost of generating a lead, CPA focuses on the expense required to convert a lead into a paying customer.

CPA is calculated by dividing the total marketing and sales spend by the number of new customers acquired during a campaign or specific period. Lowering CPA is a common goal for businesses, as it indicates greater efficiency in converting leads into customers. Optimizing marketing strategies, targeting the right audience, and refining the sales process can help reduce CPA.