If you talk to a marketer, you will frequently come across the term “Cost per Acquisition (CPA)”. Have you ever wondered what this term means and how it could affect your business? In simple terms, cost per acquisition, is the cost of getting a person to do something you desire. It could be something as simple as a sign-up or it could mean something bigger like getting someone to call your company.
Calculating Cost per Lead (CPL) and Cost per Acquisition (CPA)
One of the easiest ways of calculating your CPL is by dividing the total amount you spend on a Pay Per Click campaign by the number of appliance repair leads generated by the campaign. For example, if you have spent $500 on your campaign and generated 50 leads, it means that your cost per acquisition is $500 ÷ 50 = $10 per lead.
To determine your CPA, you can ask your sales team for details on the number of leads that have converted. If 5 percent of your leads have converted, the cost of acquiring a customer is CPL ($10) ÷ Conversion Ratio (5%) = $200
Once you get an idea of the amount you have to invest to get a new customer, you can easily arrive at your PPC budget. For instance, if you plan to get 10 new customers every month, you have to invest CPA ($200) x No. Of Customers Needed (10) = $2000 per month
Some of the steps you can take to optimize your CPA include:
Check Results Of Search Queries
Look at the search queries that trigger your ad. You can easily do this by running a search report. If your CPA is high, there is a high possibility that your ad is getting trigger for irrelevant queries. This problem can be eliminated by removing negative keywords from your list of keywords. Additionally, you could look at relevant search queries and add those keywords to your list of keywords. This will help in reducing the cost per acquisition.
Improve Ad Copy
Having a high-quality ad copy will not only increase your Quality Score but will also improve your click rate. You can use the search query reports, to create relevant and compelling appliance repair ads that cater to the words and phrases searched by the consumer. You can use variations of your ad to get better results.
Good Landing Page Is Important
Your appliance repair landing page must be a page where the user wants to land. If the user has searched for a term and clicked on your ad, you know what the person is expecting. If you provide them with the details they are searching, it is easier to convert them. Ideally, these details must be served on a single page.
Keep Tweaking Your Bids
After focusing your attention on improving your appliance service ads and the quality of the landing page, it is time to tweak your bids. You must calculate the CPA for each appliance repair campaign and find out the campaigns that are under performing. Adjust the bid rate of these campaigns and find out if they meet your appliance service CPA goals. You can use several online marketing tools such as templates and scripts to adjust your account bids automatically.
If you would like to learn more online marketing tips to grow your appliance service company, check out our FREE Online Marketing guide here.