Unit Economics deals with revenues and costs. Comparison of revenue and cost metrics gives us the insights about profitability of our business. Observing these metrics in time helps us to steer the logic of our marketing campaigns.
We’ve calculated two revenue metrics so far: ARPU and ARPPU. The correspondent cost metrics are:
- CPA – Cost Per Acquisiton. How much did we pay for a user to signup.
- CAC – Customer Acquisiton Cost. How much did we pay for a customer.
In this lesson let’s calcualte CPA. This metric is also known by name CPS – Cost P...