Cost Per Acquisition Is The Only Analytic That Matters
Your cost per acquisition or CPA cost is the only analytic that matters to your business. This cost is the culmination of your marketing efforts. You can take this number and divide it by the amount of marketing dollars you spent to determine your return on investment or ROI. Knowing how to measure your cost per acquisition or CPA is easy but key to being successful in marketing your business.
How To Measure Your Cost Per Acquisition
Measuring your cost per acquisition depends on having clear analytics data on sales, marketing dollars spent, and analytics on your regular and seasonal sales not influenced by marketing campaigns. Using this data on sales from periods when you were not marketing anything, you can reference current sales and determine the ROI of your marketing dollars. If you are a new business this information is easy to determine because sales were zero before your first marketing campaigns. If your business is run exclusively online then determining your cost per acquisition is also easy because precise analytics is always available.
Use Your Data To Determine Cost Per Acquisition
Referencing periods when you were and were not running marketing campaigns is a great way to give you a good idea of what you cost per acquisition is. With enough data you can calculate your cost per acquisition easily using tools like these. For the most part however obtaining the data is the hard part.
How To Collect A Sufficient Amount Of Data To Calculate CPA
Collecting sufficient data is the hard part when trying to calculate your CPA precisely. If you are making sales online then, once again, collecting this data is easy. Create a landing page that is orientated towards a certain ad or ad set. Track the number of people coming to this page using a combination of your advertising platform and Google Analytics. Between this information you can get a good idea of how effective your ad is at getting people to your landing page. Calculating CPA from here simply involves using tools like Google Analytics to track the number of people clicking on “buy” and actually following through to pay for your product or service. Learn how to use Google Analytics wide range of features here.
Start Lowering Your Cost Per Acquisition Cost Today
Baza Marketing can help you lower your cost per acquisition cost with more effective ads, better data analysis, and other services we incorporate to make your marketing campaigns work as efficiently and effectively as possible. Our Ad Management Services are economic for any business and we work with you to develop a price and plan that will work best for your business and budget. Contact us today to learn more about how to lower your cost per acquisition costs and make more sales to generate higher revenues for your business.
– The Baza Team