Cost per acquisition (CPA)
Also called: CPA, cost per client, client acquisition cost
Cost per acquisition (CPA) is the total marketing spend for a campaign or channel divided by the number of new clients it produced.
CPA is more useful than cost per lead because it counts what matters: clients, not form fills. A cheap lead source that never closes has a high CPA.
To calculate it, the agency needs attribution that follows a lead all the way to a written or issued policy.
Comparing CPA across channels shows where the next marketing dollar should go.
"The cheaper lead source had a higher cost per acquisition because so few of its leads became clients."
How do I calculate cost per client for an insurance agency?
Divide the total spend on a campaign or channel by the number of new clients it produced in the same period. It needs attribution that follows leads all the way to a written policy.