Metrics Dictionary

NCPA

ncpa

Overview

New Customer Cost Per Acquisition (NCPA, New Customer CPA) measures the cost to acquire a new customer based on blended ad spend.

📘

NCPA = Blended Ad Spend ÷ New Customer Orders

The calculation is based on data in the Blended Stats table.

Detailed Breakdown

The formula above is derived from the following components:

  • Blended Ad Spend = spend + custom_ad_spend, where

    • spend = SUM(spend) --> Ads table
    • custom_ad_spend = SUM(IF(is_ad_spend, amount, 0)) --> Custom Spend table

  • New Customer Orders = SUM(new_customer_orders) --> Orders table

Insights and Actions

New Customer Cost Per Acquisition (NCPA, New Customer CPA) reveals how much it costs to acquire a new customer, helping assess the efficiency of your ad spend in driving first-time buyers.

  • Monitor Acquisition Efficiency: Use NCPA to evaluate how effectively your ad spend translates into new customers. Rising NCPA may signal inefficiencies in your campaigns.
  • Optimize Targeting Strategies: High NCPA might indicate that your targeting is too broad. Refine your audience to attract high-conversion, cost-effective segments.
  • Compare with Lifetime Value (LTV): Pair NCPA with customer LTV to ensure the cost of acquiring new customers is justified by their long-term revenue potential.

Related Metrics

  • Blended ROAS: Offers insight into the overall profitability of your ad spend, complementing NCPA by highlighting revenue generated.
  • New Customer Orders: Tracks the volume of first-time purchases, providing context to your NCPA metric.
  • Blended Ad Spend: Keeps you informed about total ad investment, ensuring you're aware of costs contributing to NCPA.

Example Use

Prompt

What's my NCPA for the past 90 days?

Response

Query

SELECT
  COALESCE(
    SUM(bst.spend) / NULLIF(SUM(bst.new_customer_orders), 0),
    0
  ) AS ncpa
FROM
  blended_stats_tvf () AS bst
WHERE
  bst.event_date BETWEEN CURRENT_DATE() - INTERVAL 90 DAY AND CURRENT_DATE()  - 1

Updated 3 days ago