Investopedia

Continue to Site »

Cost Per Gross Addition - CPGA

Filed Under »
Dictionary Says

Definition of 'Cost Per Gross Addition - CPGA'

A ratio used to quantify the costs of acquiring one new customer to a business. Often, the CPGA ratio is used by companies that offer subscription services to clients, such as wireless communication companies and satellite radio companies.

Cost Per Gross Addition (CPGA)
Investopedia Says

Investopedia explains 'Cost Per Gross Addition - CPGA'

These companies often will compare their own CPGA values with competing companies to compare who is better able to attract new customers at a lower cost.

Investors will look to compare a company's CPGA over a reporting period, either quarter on quarter, or year over year. Specifically investors will be looking to see if the number is decreasing over these periods. If it is, this could be a sign that the company attracting more customers for the same level of cost or it may show that the company is reducing its costs while attracting the same amount of customers.

Articles Of Interest

  1.

    Evaluating A Company's Management

    Financial statements don't tell you everything about a company's health. Investigate the management behind the numbers!

  2. Advanced Financial Statement Analysis

    Learn what it means to do your homework on a company's performance and reporting practices before investing.

  3. New Year Planning For Business Owners

    Make a resolution to start your business off on the right foot in the new year.

  4. How To Use Crowdfunding To Start Your Business

    It may be difficult to raise enough money needed for a start-up. However, there's always the option of pooling together funds with a group of people.

  5. 5 Tips For Starting A Business

    From knowing your competition to setting reasonable goals, there are many useful tips to keep in mind when starting a small business.

  6. 6 Branding Tips For Small Business Owners

    One of the most important areas for all businesses to utilize is branding.

  7. Streamlining Tips For Small Business Owners

    Templates for accounting, proposals and correspondence; email templates and auto-responders; proposal request forms, questionnaires, grouping tasks and other tips for streamlining your business.

  8. Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.

  9. How To Create A Business Succession Plan

    Make sure the business you built continues to thrive long after you've left the helm.

  10. How To Write A Business Plan

    A well-written business plan will help you gain investor interest, and determine the strengths and weaknesses of your company.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center