Cost Per Acquisition (CPA)
The basic way to calculate CPA is to take your overall marketing expenses and divide this dollar amount by the number of new customers you’ve acquired during this same time period. In other words, if you’ve spent $30,000 on marketing expenses over the past three months while simultaneously picking up 500 new customers, your CPA is $60. While this isn’t a totally accurate reflection of your total cost per acquisition, it at least gives you a number to base projections on.
Churn refers to the measure of how many customers stop paying for your product or service over a given period of time.
Activation refers to the conversion rate from when a visitor transitions into an active user. A high conversion rate between visitors and activation means visitors are having a good initial experience on your website. A poor conversion rate means your website is doing a sub-par job of conveying value.
To measure activation, you have to first create a definition for what it means to be an active user. For some, this will mean simply signing up for an e-mail list or downloading a white paper. For other companies, activation is determined by purchasing a product or signing up for a service.
Landing Page Conversion Rate
conversion rates for landing pages can determine if your pages are properly designed. When tracked with A/B split testing techniques, you can pinpoint the exact features that work. Ideally, conversion rates should be above 20 or 25 percent to be considered healthy.
Mobile Conversion Rates
Follow the number of lead conversions you’re getting from mobile devices, the conversion rates of mobile optimized landing pages, and the bounce rates from different mobile devices. This will tell you exactly how – and if – mobile users are converting. The more mobile KPIs you put in place now, the less work you’ll have to do in the future.