You’ve set up your advertising services, protocols, and automation; now, all that’s left is to see if it was worth it. It most definitely was, as you’ve noticed an increase in traffic and purchases, but what’s the exact value?
Below we’ll expand more about what’s the magic behind CPA and how you can get a firm grasp over it.
Maybe you’ve heard the old saying: “Doing business without advertising is like sending winks to a girl in the dark. You’re the only one who knows you’re doing it.”
When I first heard it, it really struck a chord. Suddenly, the efforts to upgrade my offer and make it unique so clients would be lining up seemed futile.
I wasn’t letting anyone know, so no matter the degree of my expertise, without actually showing it to prospects, I might have as well toot my own horn for the rest of eternity – I would still be out of business.
Reality check – the future is here
In this day and age, businesses awake to this fact much quicker, both to their and their audiences’ benefit. Tools dedicated to online advertising help us show what we want to the exact people we want to see it.
Along with this, we get access to overviews of our performance, deep insights into our successes, and if we look through a wondrous eye – a glance of our shortcomings as well.
One of the main factors in our campaigns, be they successful or less so (even with the fact that we all strive for success), is how pricey they are. Not just this.
If we are investing a heap into being seen by our audience, but our sales are going through the roof, great. Can we get more sales for less money spent on ads, though?
If we build a strategy, create unique adverts, target the right audience, and our sales are stagnating, not so great. Why aren’t we getting more sales?
One of Florida’s best web design companies assisted us in discovering how tracking the CPA can be approached, examined, and used.
So, let’s look in more detail into how much we might be underperforming compared to our original idea and how to estimate that.
Cost Per Acquisition is one of the most important metrics you can track to determine the success of your online campaigns. If calculated correctly, it’ll give you an almost precise return on investment (ROI) estimate.
- Count the obvious
Yours is perhaps a minor firm, and you have just recently become aware of the importance of online marketing. Great. You went on and hired a digital agency to help transform your online presence. Excellent. You’ve gone on and created content and agreed upon the directions for your campaigns. What now? There are a few scenarios that can take place after you’ve posted your content online or once you’ve posted an update to your campaign.If a user sees your advert, clicks on it, and then goes directly to the shop and buys, that’s the ideal scenario. Your targeted ads worked perfectly; the user was immediately decisive and gave you a direct clue to how much your marketing segments are paying off.
- Know there are less obvious ways that need to be calculated
The other way you benefit from your campaigns is less obvious. As before, users might see your advert, click on it to get more information, and then simply bookmark it (which is better, as this might be measurable, depending on the platform).
They might choose to note it in their own way (screenshot it, for example) and then come back to it by searching it through * insert-favorite-search-engine-here*.
In regards to calculating your CPA, this is effectively invisible. You are indeed making a sale, either through your website or through a vendor, yet, you have no way of knowing how the user got to that purchase button. That obviously causes discrepancies when observing data.
- Take all that you can get
To develop a silhouette of what’s actually going on and the proportion of your campaigns, you might need to funnel things down. So let me expand on that. Many trusted digital marketing companies could help you put yourself out there and help you understand where you are and how close you are to your goals. Using the data deductively can help you establish brand awareness, familiarity, and consideration, closely observing the stages that lead to the good stuff – purchases.By keeping track of repeat visits and purchases, you can get an insight into your brand loyalty and how it affects your sales cycles when you start a new campaign or launch a new product.
Sounds kinda vague? It’s alright; I first thought so too.
- “Where do I know you from”?
I’m sure that the first time you saw the question “Where did you hear about us?” on a weaver or a questionnaire, you thought that people reading your answer wanted to find out the best medium for promotion. I bet you didn’t know you’d be asking that question yourself so quickly, let alone using it to work out ways to adapt your next steps. Even if you did, maybe you didn’t know you’ll be including it into calculating things that were indirect pointers that a customer or user followed you.Methods of this sort are ways to sow incalculable and otherwise intangible data about the effects of a particular medium on your sales.
Pro tip: Giving people with a strong internet presence and a broad audience a promo code is a way to reach new customers and precisely track the influence of that promotion on your sales.
- A swing and a hit!
Truth be told, what you need to do is simple. Do what you need to in agreement with your marketing agency, and you’ll see results. Remember those winks in the dark we mentioned earlier? Well, even with enough light, I suspect you’ll become a Casanova who has every girl (or boy, whatever floats your boat) falling for you when they notice you awkwardly gawking and twitching your eye to signal attraction. The fact of the matter, though, some will find that nice and flattering and will actually take you up on your offer. Those will be meaningful, significant, or plain out rewarding. In some cases, you’ll learn what you did right, and in some cases, you’ll even feel comfortable enough to ask.Whatever the case may be, do more of what you did well. Try perfecting your process and making it worthwhile for everyone who actually chooses you rather than anyone else.
Soon, you’ll get such a hang of this that you’ll let what you’re learning to govern your future steps, looks, and winks.
6. Every study must be reproducible to be valid
The formula for calculating the dry and raw CPA is easily understandable and logical.
Simply divide the total cost of promotional activities with the number of new customers acquired.
To make this more specific, you’d need to look to break it down into smaller bits, actually observing this for every channel and medium you invested your resources in.
Some of these will be easily calculated. Some will only show results later, yet, they will give an estimate.
Do this, as if you don’t, you’ll never have an estimate of what to improve to make your campaign flourish.
Even if the estimate is broad and is just an estimate, given that a circle has 360 degrees and our perspective less, knowing which 135 degrees to focus on frequently proves to be exactly what we need.