top of page
Cost per Acquisition (CPA)
The total cost of acquiring a new customer through marketing efforts, often used to assess the efficiency of different channels.
Implications
The cost incurred by a company to acquire a new customer, calculated by dividing total marketing and sales expenses by the number of new customers gained, used to evaluate the efficiency of marketing campaigns.
Example
Example: An online retailer calculates its CPA by dividing the total advertising spend for a campaign by the number of new customers acquired through that campaign, helping to assess the campaign�s ROI.
Related Terms
Different from customer lifetime value (CLV), which estimates the total revenue a customer will generate over their relationship with the company, CPA focuses on the initial cost of acquiring that customer.
Get INSTANT comprehensive market research of any industry
Chat with AII Consultant Now!
bottom of page