CAC vs CPA
CAC is the fully loaded cost of turning a stranger into a paying customer, while CPA is the cost of getting one specific action, which is not always a sale. Every CAC is a kind of CPA, but not every CPA is a CAC.
CAC
The total amount of money a business spends to acquire a single new customer, including marketing, sales, and overhead costs. It equals total acquisition spend divided by new customers gained.
CPA
The marketing cost to acquire one paying customer or drive a specific desired action like a signup or download. It divides total campaign spend by acquisitions or desired actions achieved.
A new paying customer
Any defined action (signup, lead, purchase, download)
Usually all sales and marketing costs
Usually just the spend on the specific campaign
Judging if your business model is sustainable
Judging if one campaign or channel is efficient
| What counts as the action | A new paying customer | Any defined action (signup, lead, purchase, download) |
|---|---|---|
| Scope of costs included | Usually all sales and marketing costs | Usually just the spend on the specific campaign |
| Best used for | Judging if your business model is sustainable | Judging if one campaign or channel is efficient |