Cost Per Acquisition (CPA)

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Cost Per Acquisition, or "CPA," is a marketing metric that measures the aggregate cost to acquire a paying customer. Best practices tell us this metric should be calculated per campaign or channel level. This financial metric should correspond directly to measuring the revenue impact of specific marketing campaigns and efforts.  

The cost of acquiring paid customers is only one use of this metric. Companies should also apply this to customer or prospect actions such as newsletter sign-ups, demonstration registrations, event attendance, both online and in person, or direct mail responses. 

The overall goal is making a sale, whether that is the first sale with a new customer or repeat business from existing clients. CPA is a vital measurement of marketing success that will help your organization know the return on your marketing spending and efforts.     

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