Exploring acquisition and conversion metrics

Acquisition metrics capture the cost and efficiency of bringing people to a product, while conversion metrics show whether those people take meaningful actions. Both sides are essential: high traffic or sign-ups are only valuable if they lead to sustained use.

Key examples include:

• Cost per acquisition (CPA): measures how much it costs to attract a new lead, such as a free trial sign-up.
• Customer acquisition cost (CAC): includes all sales and marketing expenses to gain a paying customer.
• Conversion rate (CVR): the percentage of users who complete a desired action, from purchase to subscription.
• Time to first value (TTFV): shows how quickly users experience the product’s core benefit, which strongly influences retention.
• Funnel drop-off rate: identifies the exact stage where users leave before completing the journey.

Together, these measures reveal whether awareness translates into adoption and where improvements in onboarding or product flow are most needed.