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What Is CPA (Cost Per Acquisition) & Why Is It Important?

What Is CPA

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.    

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