Contractors Ad Math: CPO vs CPA

Transcript

This is a golden metric you must insist on knowing.

If you’re a contractor who’s using Google Ads, then you’re probably familiar with the term CPA—short for Cost Per Acquisition. CPA is how much it costs to have Google send you a call or a form fill.

But CPA isn’t really the number you should be concerned with. Look, any marketing guy who’s even mildly competent can make your phone ring or get your forms filled out—that’s simple.

But getting the phone to ring or your inbox full with actual prospective customers with the opportunity to close a sale—well, that’s a different conversation altogether.

That’s why at True Blue Collar, we calculate what each one of those real opportunities costs, and we call that your CPO—Cost Per Opportunity.

Ideally, CPA and CPO should be close to each other, with your CPO always being equal to or higher than your CPA. But regardless, this is a golden metric you must insist on knowing.

Contractors Ad Math: CPO vs CPA

Full Video Transcript

This is a golden metric you must insist on knowing.

If you’re a contractor who’s using Google Ads, then you’re probably familiar with the term CPA—short for Cost Per Acquisition. CPA is how much it costs to have Google send you a call or a form fill.

But CPA isn’t really the number you should be concerned with. Look, any marketing guy who’s even mildly competent can make your phone ring or get your forms filled out—that’s simple.

But getting the phone to ring or your inbox full with actual prospective customers with the opportunity to close a sale—well, that’s a different conversation altogether.

That’s why at True Blue Collar, we calculate what each one of those real opportunities costs, and we call that your CPO—Cost Per Opportunity.

Ideally, CPA and CPO should be close to each other, with your CPO always being equal to or higher than your CPA. But regardless, this is a golden metric you must insist on knowing.

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