Proven Strategies for Optimising CPA (Cost Per Acquisition)

In online advertising, clicks on your ads might seem like the critical measurement of success – but that’s just part of the picture. 

Cost per acquisition (CPA) is a marketing metric that measures how effectively your ad spend results in actual customer conversions – whether it’s a purchase, lead, or other desired action.

We’ll discuss seven proven strategies to help you optimise CPA and get the most out of your marketing budget.

What is Cost Per Acquisition?

CPA calculates the total cost of acquiring one paying customer via a given channel or campaign, and it’s a pricing model used in digital advertising, where brands will pay for each successful acquisition (i.e. form submissions or sales).

Clicks will really just tell you when people arrive at your content. But Cost Per Acquisition helps you to understand the effectiveness of your content’s performance. Lowering your CPA means driving more conversions while spending less, ensuring that your campaigns are cost-effective and scalable.

Okay, let’s dive into those CPA optimisation strategies.

1. Understand and optimise Ad Quality Scores

A high-quality score ensures better ad placements at a lower cost. Platforms like Google Ads determine your ad’s placement based on a combination of your bid and quality score, which takes into account:

• Relevance of the ad to the keyword
• Expected click-through rate (CTR)
• Landing page experience

Focus on crafting compelling ad copy, selecting the right keywords, and improving your landing page experience. For example, using emotive and benefit-driven messaging instead of focusing solely on product features can enhance your ad’s appeal.

A concise, engaging headline like “Save Time and Money with [Your Product]” resonates better than a generic feature list.

Expert Tip: Use tools like Google’s Ad Rank to monitor and improve your quality score, so that you can maximise ROI on your bids.

2. Leverage Target CPA Bidding

Automated bidding strategies, such as Google’s Target CPA, use machine learning to optimise your campaigns. These systems analyse historical data and adjust bids dynamically to achieve the average target CPA you set.

While fluctuations are normal – some conversions may cost more than others – this approach focuses on keeping your overall CPA close to your target. It’s a good option for marketers looking for scalability without having the time to micro-manage individual bids.

3. Work on Customer Retention

Acquiring new customers is often more expensive than retaining existing ones. Loyal customers not only generate repeat revenue but also cost significantly less to engage.

By focusing on customer retention, you can reduce overall CPA while boosting customer lifetime value (CLV).

Retention Tactics to lower CPA

• Create personalised email campaigns with exclusive offers for repeat customers
• Develop loyalty programs to reward ongoing engagement
• Use targeted support to address customer needs promptly

Expert Tip: Monitor customer feedback and satisfaction metrics through CRM systems to identify pain points and refine your strategy.

4. Optimise Landing Pages for Conversions

An effective landing page can make or break your CPA efforts. Even the most persuasive ads will fail if users land on a page that doesn’t deliver on its promise. 

A well-optimised landing page is essential for converting visitors into customers and plays a significant role in lowering your CPA. Follow these tips to ensure your landing pages deliver results:

• Use attention-grabbing headlines and subheadings
  Craft headlines that immediately capture attention and align with the promise of your ad copy. A good headline should be concise and grab your customer’s attention. Complement this with subheadings that provide additional context or reinforce the value of your offering.
• Remove unnecessary external links
  External links can distract users and lead them away from your desired action. Ensure your landing page has a singular focus and keeps visitors within the conversion funnel. Use internal navigation sparingly and only if it enhances the user experience without diverting attention from the main goal.
• Incorporate high-quality visuals
  Visuals can convey your message more effectively than text alone. Use high-resolution images, infographics, or short videos that highlight your product or service’s value proposition. Don’t underestimate the power of a 30-second demo video or customer testimonial when it comes to building trust and engagement.
• Include a clear and compelling CTA
  Your CTA is the anchor of your landing page. Make it stand out with bold, contrasting colours, clear fonts, and action-oriented text like “Start Saving Today” or “Get Your Free Trial.” Place the CTA strategically above the fold and at the end of key sections to make it easily accessible and to drive that message home.
• Use a simple and consistent design
  A clutter-free, visually cohesive design ensures your message is clear and doesn’t overwhelm visitors. Stick to a clean layout, consistent fonts, and a limited colour palette to create a professional appearance that keeps the focus on your offering.
• Highlight social proof and trust signals
  Incorporate testimonials, reviews, case studies, or trust badges to build credibility. Seeing positive feedback or validation from other customers builds trust and increases the likelihood of conversions.
• Optimise for mobile
  With a huge rise in users accessing content on mobile devices – one study found that mobile eCommerce sales accounted for almost two-thirds (65.7%) of total eCommerce sales worldwide in 2022 – your landing page must be mobile-friendly. Use a responsive design, optimise page load speed, and implement a simplified navigation to accommodate smaller screens.
• A/B Test Regularly
  Continuous improvement is key to enhancing your landing pages. Run A/B tests on various elements, including headlines, images, CTAs, and layouts, to identify what resonates most with your audience and drives conversions.

Expert Tip: A/B test landing page elements such as headlines, images, and CTAs to see what resonates best with your audience.

5. Carry out regular Market Research

Understanding your target audience is fundamental to lowering CPA. Market research provides insights into audience preferences, behaviours, and pain points, giving you the data you need to tailor campaigns that resonate.

Quick wins with market research

• Analyse demographic data to refine targeting parameters
• Use platforms like Reddit and social media forums to explore audience conversations
• Regularly review competitor strategies for inspiration

6. Leverage your CRM for Lead Prioritisation

A customer relationship management (CRM) system allows you to organise and prioritise leads based on their likelihood to convert. HubSpot’s research found that 44% of marketers say using a customer relationship management software (CRM) to streamline their sales cycle is an effective strategy for lowering CPA costs.

By focusing your efforts on high-potential prospects, you’ll reduce wasteful spending and improve overall campaign efficiency, lowering CPAs. Here are some of the ways you can use CRM systems to prioritise leads:

• Segment leads based on behaviour, demographics, and sales cycle stage.
• Automate follow-ups with personalised messaging.
• Track customer interactions to identify drop-off points in the sales funnel.

7. Monitor and Adjust Campaigns Regularly

Marketing isn’t a set-it-and-forget-it game. Regularly analysing performance data and adjusting your strategy ensures you’re not overspending on ineffective campaigns.

Key metrics to monitor:

• Conversion rates
• Click-through rates (CTR)
• Cost per click (CPC)

Expert Tip: Use free tools like ROI calculators and monthly marketing templates to track your CPA and identify trends over time.

Driving Success with Smarter CPA Strategies

Lowering your CPA isn’t just about reducing costs; it’s about driving meaningful engagement that translates into business growth.

By focusing on high-quality ads, leveraging data-driven bidding strategies, and optimising customer retention and landing pages, you can achieve a sustainable and profitable marketing strategy.