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Analytics & Metrics

What Is Cost Per Acquisition Benchmarks by Industry?

Average costs to acquire one customer across different industries, used to evaluate whether your marketing spend is competitive or wasteful.

Cost Per Acquisition Benchmarks by Industry Explained

Cost per acquisition (CPA) benchmarks tell you what companies in your industry typically spend to acquire a customer. This context is critical for evaluating your own marketing performance.

Benchmarks vary dramatically by industry. SaaS companies average $200 to $800 for SMB customers and $5,000 to $50,000 for enterprise. Healthcare practices spend $150 to $400 per new patient. Home services companies pay $100 to $350 per new customer through digital channels.

These numbers shift based on channel. Google Ads CPA is typically 2-3x higher than SEO-driven CPA, but produces results faster. Referral programs often deliver the lowest CPA but are harder to scale.

The most useful application of benchmarks is trend analysis. If your CPA was $200 last quarter and is now $350, something changed: increased competition, ad platform changes, or declining conversion rates. Benchmarks help you understand whether your CPA is within normal range or requires attention.

Why Cost Per Acquisition Benchmarks by Industry Matters

Without benchmarks, you cannot evaluate whether $300 to acquire a customer is good or terrible. In healthcare, that is competitive. In SaaS, it might be below average. Benchmarks give you the context to make informed budget decisions.

Common Mistakes

  1. 1

    Comparing your CPA to a different industry's benchmark

  2. 2

    Using blended CPA instead of channel-specific CPA, which hides which channels are overpriced

  3. 3

    Chasing lower CPA at the expense of lead quality. Cheap leads that do not convert cost more overall.

Frequently Asked Questions

What is a good cost per acquisition?

A good CPA depends on customer lifetime value. The rule of thumb: CPA should be less than one-third of LTV. Industry averages: SaaS SMB $200-$800, healthcare $150-$400, home services $100-$350, professional services $500-$2,000, e-commerce $30-$150.

How do you lower your cost per acquisition?

Improve conversion rates (CRO on landing pages), optimize ad targeting (narrow to best-fit audiences), invest in organic channels (SEO, content, referrals), and shorten sales cycles. The fastest win is usually improving the conversion rate of your existing traffic.

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