Original subtitles

This far, we've been focusing on the conversion metrics within a marketing metrics.

However, you can also capture the impact of marketing campaign in

terms of revenue using metrics that capture the financial cost.

These include cost per acquisition and lifetime values.

Let's tackle cost per acquisition first.

Before we get started,

acquisition refers to a non-paying customer.

Cost per acquisition focuses on the sales and marketing costs including cost of supplies,

labor and marketing, overhead,

and sales that it took to convert a non paying customer into a paying customer.

You calculated by dividing the marketing and sales cost by the number of newly customers.

If you're feeling confused about CPA and CAC at this point,

don't worry, it confused me too.

Let's go over the difference between these.

CPA is focused on the marketing and sales cost,

so it includes overhead and salaries for staff in addition to marketing and sales costs.

CPA also focuses on sales leads,

not actual paying customers.