Acquisition Profitability
A way to understand whether your acquisition investment is economically sound (what you get back vs. what you spend).
Definition
A way to understand whether your acquisition investment is economically sound (what you get back vs. what you spend).
More context
Acquisition profitability answers a simple question: are you buying growth that pays back? It combines spend and outcomes (often via CRM conversions) so decisions are based on unit economics, not channel dashboards.
Why it matters
It prevents “growth” from turning into performance marketing theater. If acquisition isn’t profitable (or trending toward it), scaling acquisition compounds losses.
How to use it
Track spend + conversion outcomes consistently, prefer blended signals when attribution is unreliable, and review profitability alongside OKR progress.
Common pitfalls
Relying on perfect attribution, ignoring non-media costs, or comparing channels without consistent definitions and time windows.
Related terms
- CAC (Customer Acquisition Cost) — The total cost to acquire a customer. For more accurate CAC, include costs like salaries, tools, outsourcing, and other acquisition-related overhead.
- Combined Conversions — A combined view of conversions (often from your CRM) used as a reliable signal when channel-level attribution is noisy.
- CRM — Customer relationship management system. Often the source of truth for leads and conversions (and useful for “combined conversions”).
- GDPR — EU privacy regulation that impacts tracking and attribution. In practice, it often makes channel-level attribution less reliable.