Cost Per Acquisition (CPA)

How much do you have to spend on marketing to get one new paying customer? That is your Cost Per Acquisition (CPA). If you spend $500 on Facebook Ads and get 10 new clients, your CPA is $50. For Niagara businesses, knowing this number is the difference between profit and bankruptcy. If your CPA is higher than the profit you make on a sale, you are losing money with every new customer.

In this section, we discuss strategies to lower your CPA without lowering your prices. We cover tactics like improving your landing page (so more clicks turn into customers) and targeting more specific audiences. Knowing your “Target CPA” allows you to scale your advertising confidently—if you know you make $100 profit per customer, you can happily spend $30 to acquire them all day long.