What is Cost Per Acquisition (CPA)?

Cost per acquisition results from dividing your total budget spent on an ad by the total number of orders or conversions generated by that ad or channel. Let’s suppose you spent 500 euros on a Facebook campaign that generated 50 orders. In this situation, your average CPA will be 10 euros.

CPA = total cost of campaign/ total nr. of conversions

CPA will give you an average of how much it costs you to convert a user into a paid customer on your website. By decreasing your cost per acquisition you can increase your Return on Investment (ROI) faster.

There are several things you can do to minimize your CPA, such as:

• Optimizing your landing page; as this is the first contact a user has with your website after clicking on a campaign, it is very important to include elements that encourage conversions, such as personalized product recommendations and powerful CTAs.
• Optimizing the check-out process; 68% of customers abandon their shopping carts, so make sure you set up campaigns that prevent this from happening.
• Using remarketing and retargeting campaigns to reconnect with potential customers or recover abandoned carts.
• Optimizing the mobile user experience
• Lowering budget or excluding low-converting keywords in your search ads.
• Increasing your subscriber database as email marketing is still the channel with the lowest CPA compared to other marketing channels.