Identifying Customer Acquisition KPI

Let's look at this question about business metrics. We need to identify which key performance indicator, or K P I, helps determine the cost to acquire a new customer.

Let's evaluate each option to see what they measure. First, Click Through Rate, or C T R, measure the percentage of people who clicked on a specific link versus the total number of people who viewed it. This is about engagement, not cost per customer.

Next, Revenue is the total amount of income generated by the sale of goods or services. It tells us how much money is coming in, but it doesn't tell us how much we spent to get those customers.

Third, Life Time Value, or L T V, estimates the total revenue a business can expect from a single customer account throughout the business relationship. This tells us what a customer is worth over time, but not the initial acquisition cost.