HOW MUCH IS IT COSTING YOU TO FIND NEW CUSTOMERS?
To understand how effective your marketing and advertising efforts are, its important to know how much it's costing you at each stage of the sales process. This includes how much is it costing you to generate leads (CPA), drive traffic to your website (CPC) and ultimately, convert the leads into sales (CPS). The Factory's calculator helps you understand where your marketing strengths lie and where they can be improved. It also helps you determine how much campaign budget you may need to achieve your desired business goals.
What is cost per acquisition (CPA)?
Cost Per Acquisition is sometimes referred to as Cost Per Lead and is essentially the cost of obtaining the contact details of a person who has given permission to be contacted in relation to an advertisement. Once you have received this lead, you can then use your own sales processes to convert the lead into a sale, calculate your cost per sale and finally, your return on your advertising investment.
Effective digital advertising happens when you achieve the volume of leads your business can handle and generate more sales revenue than the cost of those leads.