Metrics & KPIs

CPA

Cost Per Acquisition — how much you pay in ad spend for one purchase. Closely related to CAC but usually refers to platform-reported cost per conversion.

CPA is the ad-platform version of customer cost: ad spend ÷ purchases, as reported by Meta, Google, or TikTok. It's useful for optimization at the ad-set level but less useful for business decisions because platforms over-report conversions they caused.

Your true business CPA (what your bank actually shows) is usually 15-30% higher than what Meta or TikTok reports. Always reconcile platform CPA with Shopify-reported orders at the end of each day.

CPA is the number creative testing lives and dies by. When you test new hooks, new angles, new UGC concepts, CPA is the lead indicator of a winner — usually before ROAS stabilizes, because CPA is less sensitive to the specific basket size of whoever converted.

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