Key Facts

• CPA is calculated as total campaign cost divided by total conversions — like $5,000 spent ÷ 250 leads = $20 per lead, per Taylor.
• CAC takes a broader view, dividing total sales and marketing expenses by new customers — one example yielded $833 per customer, according to Zendesk.
• A healthy LTV:CAC ratio is 3:1, meaning you earn three dollars for every dollar spent acquiring a customer, says Taylor.
• Average CPA benchmarks sit at $59.18 for PPC search and $60.76 for PPC display across industries, per Geckoboard.
• A surprisingly low CPA isn't always good — it may mean you're not investing quickly enough to grow, warns Geckoboard.
• More than 75% of buyers now prefer digital self-serve and remote engagement over in-person sales, Zendesk reports.
• Newer companies face higher CACs than established ones due to onboarding, testing strategies, and building foundations, per Zendesk.