In the world of business, there are many terms, acronyms, and laws you have to know to succeed. One of them is a famous acronym known as CPA. Now, the CPA in which we'll discuss here isn't your Certified Public Accountant. In fact, the acronym CPA actually stands for cost per acquisition. In business, a CPA is a marketing tactic business use to calculate how much it would cost to turn into a paying customer. In other words, it answers the question, "how much does it cost me to convert this person into a customer?".
Now you're probably thinking it's some over-complicated algebra problem that figures this out for you. Well, I can reassure you that it's quite simple. In fact, there are a few formulas used to calculate your CPA, here are a few examples:
Website CPA= (number of visitors to your site) ÷ (the number of sales made) x 100.
Marketing CPA = (amount of ad money spent) ÷ (the number of customers received) x 100.
Those are just a few general ways to calculate your CPAs. CTAs, on the other hand, are a major game-changer when it comes to CPAs. By definition, a CTA stands for call to action. Call to actions are just what they sound like, an action that requests (or calls) the viewer to take action. CTAs can be something as simple as a subscription form, or newsletter pop-up. On product pages, CTAs can be used to drive a sale by making the customer feel a sense of urgency. An example of this would be a timer set on the product page, which can be used to showcase how long someone has before the sale ends or before the quantity of products run out.
All in all, your main focus as a business owner should be your CPAs, better known as conversions. Knowing your CPAs will set you apart from others in your industry who do not and help you walk on a successful path. Consider your CTAs as a major influence on your conversions. They make or break your success on a CPAs, so be tentative to them. Want more information on how you can boost your CPAs? Subscribe to our newsletter!