Summary  
This chapter explains how to compute and attribute user acquisition metrics by tracking new-user counts per channel and calculating cost per acquisition to guide optimization decisions.

General domain of usage  
Digital marketing analytics

Acquisition metrics measure how many new users are brought into a product through various channels.

Definition

Watch this video for a clear overview of acquisition metrics, including how to track new users, compare different acquisition channels, and use data to improve your marketing strategies. You will see practical examples of measuring user sign-ups from sources like search engines, paid ads, and referrals. This visual explanation will help you connect the concepts to real-world product growth scenarios.

Acquisition metrics are quantitative measures that track the number of new users who begin interacting with your product. These metrics help you determine the effectiveness of your marketing channels, campaigns, and onboarding processes in attracting new users. By understanding acquisition, you can allocate resources more effectively, optimize marketing spend, and set realistic growth targets. Acquisition metrics are often the first step in the AARRR (Acquisition, Activation, Retention, Referral, Revenue) growth funnel, providing the foundation for further engagement and monetization efforts.

Users find your product via search engines without paid ads;

User signs up after Googling your product;

Users click on paid ads (Google, Facebook, etc.);

User installs app after seeing a Facebook ad;

Users come from social media posts or shares;

User registers after clicking a Twitter link;

Users join via recommendations or referral programs;

User signs up using a friend’s invite code;

Users access your product by typing the URL or using a bookmarked link;

User goes directly to your homepage and signs up;

Users come through co-marketing or integration partners.

User registers via a partner’s landing page.

Which of the following metrics best measures user acquisition?

Master the essential product metrics and growth KPIs that drive successful digital products. Learn to distinguish between vanity and actionable metrics, analyze user growth, retention, and revenue, and apply real-world analytics frameworks to inform product strategy.

Establish a solid understanding of product metrics, their importance, and how to select the right KPIs for your product.

Dive into the metrics that track user acquisition, activation, engagement, and feature adoption.

Analyze user retention, churn, and the financial health of your product.

Build and analyze conversion funnels, track events, and leverage experimentation for product improvement.

Connect metrics to product strategy and apply frameworks to real-world scenarios.

Acquisition Metrics