Cost per acquisition or CPA is a crucial metric used by e-commerce business owners and marketers to track and measure the revenue impact of a digital marketing campaign. Unlike Youtube Ads, PPC, and other marketing tactics where you pay to advertise your business without a guarantee of sales, CPA allows you to only pay after getting a lead or actual conversion. With CPA, you can grow your ROI in a scalable way with affordable costs and fewer risks.
At Insogna CPA, we’re a leading CPA accounting firm. We have the best Austin accountants with notable experience working with e-commerce business owners. Our e-commerce CPA in Texas can provide second-to-none retail tax and accounting services in Austin that will keep your store financially strong.
Why Is CPA Important And How Do You Calculate It?
CPA is among the few metrics that can show you the exact revenue generated from your marketing spend. What’s more, it’ll give you the actual numbers for how well a specific campaign is doing.
To calculate the cost per acquisition, you divide your total sales and marketing costs by the total number of conversions generated within a given time frame.
Total sales and marketing cover all the overheads that come with attracting leads and converting them to customers.
CPA = Total sales and marketing spend/ the number of acquisitions.
How To Reduce Your CPA
Because CPA tells you how much your e-commerce store would need to spend to gain new customers, reducing your cost per acquisition is a sign that:
- You’re managing your money more efficiently
- Your customer retention and sales and marketing efforts are bearing fruit
- You’re likely to enjoy an increased net profit margin
Here’s are a few tips to reduce your CPA:
Optimize Your Landing Page
The aim of landing pages is to win sales. But for this to happen, your landing page must be optimized for lead conversion. This means adding the most important and relevant content on your landing pages. For instance, only highlighting your discounts or offers and having a clearly labeled, bright, and visible call-to-action button. With such a landing page, it’ll be easier to convert visitors to customers.
Reduce Cart Abandonment
Do you have a clue about the number of people who add products to their carts but never check out? Knowing these figures is essential to minimizing abandoned cart rates. Armed with this information, you can offer discounts or even freebies to visitors who leave their carts midway. This will entice them to complete checkout, increase sales, and reduce your CPA.
Fix Technical issues On Your Site Or Store
Broken links can put a damper on marketing efforts. So take time to test and check your store and website for technical problems. In case of any issues that could be stopping leads from getting in touch with you, make sure they’re fixed. By ensuring your funnel processes work properly, you’ll make it easier for customers to buy from you and, at the same time, reduce your CPA.
We’ll Help You Grow Your E-Commerce Business
At Insogna CPA, we’re a premier CPA firm in Austin that offers a range of services to make your e-commerce store more profitable. To ensure you have a clear understanding of where money is being spent, our e-commerce CPA Texas will create detailed financial reports. Our reports will make managing your cash flow a lot easier so you can avoid surprises and plan ahead of time for seasonal changes. Contact us for a consultation and to know the cost of a CPA in Austin, TX: 512-891-8200.