How This Applies to Home Care Marketing
CPA is the ultimate efficiency metric for home care marketing because it accounts for the full conversion process. A channel might generate cheap leads (low CPL) but if those leads rarely convert to clients, the actual CPA is high. Understanding true CPA helps allocate budget to the most efficient channels.
Home care CPA varies dramatically by market and service type. A typical private-pay client might have a CPA of $500-2,000 considering all marketing costs. However, if that client stays for 18 months at $3,000/month, the acquisition cost is easily justified. The key is understanding both CPA and customer lifetime value together.
Key Takeaway
Calculate CPA by dividing total marketing spend (including agency fees, tools, and staff time) by actual clients acquired. Compare CPA against customer lifetime value—as long as CLV significantly exceeds CPA, you can profitably scale marketing investment.