If you’re not tracking your Cost per Acquisition (CPA) and Lifetime Value (LTV), you’re essentially flying blind when it comes to scaling your business.
Let’s get this straight: 90% of businesses I meet don’t know what it costs them to acquire a customer and have no idea what that customer is worth over time.
So, how do you expect to scale efficiently if you don’t know the basic numbers that drive your growth?
Cost per Acquisition: What’s It Really Cost You?
It’s easy to think that if you just spend more on ads or sales, you’ll get more customers and increase your revenue. But that’s not always the case.
What matters is understanding exactly what it costs to bring in a customer. It’s not just about the cost of the product or service. You need to account for:
Ad spend (e.g., Facebook, Google, etc.)
Sales time and onboarding
Marketing costs and merchant fees
When you understand your CPA, you can make smart decisions about how much to spend on marketing and advertising.
Lifetime Value: The True Worth of Each Customer
Next, it’s crucial to know how much each customer is worth to your business in the long term.
You need to calculate how much revenue you’ll generate from each customer over the entire relationship. Are they just a one-time purchase, or will they buy again and again?
By understanding LTV, you can shift your mindset from worrying about the immediate sale to thinking about building long-term value.
How These Two Metrics Unlock Real Growth
When you combine CPA and LTV, you gain powerful insights into how scalable your business truly is. With these two metrics in hand, you’ll have a clear idea of what it costs to acquire a customer and how much profit they’ll bring over time.
Here’s the beauty of it:
When you know that for every $1 you spend on marketing, you get $1,000 back, scaling your business becomes a strategic, data-driven decision.
You can confidently pour money into marketing knowing exactly how much you’ll get in return. It’s no longer a gamble—it’s a proven formula.
Why You Can’t Afford to Ignore Unit Economics
If you’re not tracking your CPA and LTV, you’re operating in the dark. You might be growing, but you’re probably leaving money on the table or even losing money.
These numbers aren’t just nice-to-know—they’re essential for making smart, informed decisions about how to scale your business profitably.
Ready to Scale with Confidence?
If you want to take control of your business’s growth, start by understanding your unit economics. Track your CPA and LTV, and use them to make data-backed decisions that fuel your scalability and profitability.
At New Wave Accounting and Business Advisory, we help businesses like yours optimise their numbers so that scaling becomes a clear, actionable strategy.
Reach out today, and let’s unlock the potential of your business together.
