Cost per acquisition (CPA)

Definition

The actual cost to acquire one customer after all is said and done—the metric that separates marketing theater from marketing accountability.

Example Usage

Our CPA is $47, but lifetime value is only $120—the margins are tighter than a CFO's smile at year-end reviews.

Origin

Performance marketing metric standardized in early 2000s

Fun Fact

CPA is arguably the most honest marketing metric because it directly ties spending to actual customer acquisition

Source: Performance marketing and analytics

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