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What’s A Good Cost Per Acquisition?

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Many marketing metrics are indicators of success, including conversion rates and visits. But, Cost Per Acquisition (CPA) is a financial metric that is used to directly measure the revenue impact of marketing campaigns.

According to Big Commerce, Cost Per Acquisition “measures the aggregate cost to acquire one paying customer on a campaign or channel level. CPA is a vital measurement of marketing success, generally distinguished from Cost of Acquiring Customer (CAC) by its granular application.”

It’s difficult coming up with what a customer is worth and how many leads you need to get the right customer.

Over on Search Engine Journal’s Ask The PPC, somebody asked:

“In PPC, is there a correlation between actual value of the product/service and CPA?

If so, how can one use this insight when planning the campaign budget.

Cheers!”

The SEJ post takes a look at what they consider a good CPA. The information presented there could help you out in your own budgeting efforts.

Read More Here

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