If you’re new to digital marketing, being bombarded with industry acronyms can be overwhelming.  

For example, CPA can mean cost per acquisition, the amount of money you spent to get or acquire a new client or customer.  

CPA can also mean cost per action – that is, the amount of money you spent as an advertiser to get a particular action completed by a user.  

We’ll discuss cost per acquisition in this post, and why it’s so important.  

Why Is CPA Important?

Otherwise, you’d just be playing a guessing game.  

Don’t be that guy.  

How To Calculate CPA

For example, if you spent $5,000 on your Google Ads campaign last month and acquired 3 new family law clients, your CPA would be:

5,000 ÷ 3 = $1,666.66

This tells you that you spent $1,666 for each new client last month.

The next question naturally arises;  was it worth it?  

That all depends on how much you make on each case, right?  

So this leads us to the next really important question; what is your average value of a case?

Most of you are probably thinking ¨uhhh.  Well, hmmmm.  Good question.¨

It’s not only a good question but a really important one.  

Family lawyers can typically ball-park an estimate with so-so accuracy.  

Personal injury lawyers are another story.  

But regardless of what industry or niche you’re in, you really need to get down to the nitty-gritty and calculate your average value of a sale.  

An educated guess will not suffice.  

Remember, data is king – you have to use accurate data to project accurate results and to budget correctly.