customer acquisition costs
Posted: Tue Jan 21, 2025 9:12 am
This is the amount paid by the advertiser to online publishers or search engines for each click through to their site from the advertising materials they place. The cost per click varies, depending on factors such as the search phrase, the location of the visitor, etc.
CPC = advertising costs / number of clicks
CPO (Cost Per Order)
Shows how much money boost your business with our doctor database is needed to attract one client. Calculated as the ratio of the cost of selling a single item to the number of orders placed. Increasing the profitability of investments in marketing is possible if you strive to optimize and reduce SRO.
CPO = / number of orders
ROI (Return Of Investment)
This is a return on investment indicator, an indicator of the payback and effectiveness of advertising campaigns.
Return on investment
Source: unsplash.com
ROI = ((revenue generated by marketing activity - marketing activity costs) / marketing activity costs) x 100%
Customer Lifetime Value (LTV)
Reflects how much profit the company received from sales to a specific client over the entire period of cooperation with him. Another name for the indicator is CLTV or CLV (Customer Lifetime Value).
LTV = revenue from a customer - costs of customer retention and acquisition
Task Completion Rate (TCR)
Allows you to understand how easy it is to complete the designated tasks the first time. The percentage of task completion is calculated as the ratio of the number of users who successfully completed the task to the total number of users who interacted with the resource element (order form, adding to cart, etc.). To determine the success or failure of a task, you need to define the criteria in advance, based on which the assessment will be conducted.
TCR = (number of visitors who failed the task / total number of users) x 100%
Return Visitor Ratio
It is necessary to assess the interest of users in the site. If the return rate is low, then this is normal for organizations selling one product that can be used for a very long time. For example, for construction companies or real estate agencies: a person who bought a house is unlikely to return to the company's site in the near future.
Return rate = (number of return visits / total number of visits) x 100%
Cost Per Lead
To calculate it, you need to divide the cost of an advertising channel by the number of leads that were received from it over a certain period of time.
CPL = Marketing spend / Number of resulting leads
ARPV (Average Revenue Per Visit)
Shows how much one visit costs on average, that is, how much profit one visit brings.
ARPV = revenue for the period under consideration / number of visits for the same period
There are more than 32 types of KPI indicators in e-commerce. And constant monitoring, evaluation, and analysis of each of them is necessary. Which indicators will be chosen as key ones depends on the company's goals and its marketing strategy.
Marketing metrics
Source: shutterstock.com
When you are just starting to implement the system, it is better to stop at 5-10 indicators, rather than analyze everything without even understanding what they mean. Later, you can analyze other indicators, which will help optimize the Internet marketing strategy, traffic acquisition channels, etc.
What are the rules for choosing KPI indicators that are suitable for a particular business model?
The choice should be based not only on the goal. It is necessary to take into account the company's field of activity and business model. A B2C company selling construction tools focuses on the average check size, search visibility, traffic, customer exit points and conversion. And for a B2B company providing software installation and maintenance services, the average customer lifetime, lead acquisition cost and conversion are much more important.
Read also!
CPC = advertising costs / number of clicks
CPO (Cost Per Order)
Shows how much money boost your business with our doctor database is needed to attract one client. Calculated as the ratio of the cost of selling a single item to the number of orders placed. Increasing the profitability of investments in marketing is possible if you strive to optimize and reduce SRO.
CPO = / number of orders
ROI (Return Of Investment)
This is a return on investment indicator, an indicator of the payback and effectiveness of advertising campaigns.
Return on investment
Source: unsplash.com
ROI = ((revenue generated by marketing activity - marketing activity costs) / marketing activity costs) x 100%
Customer Lifetime Value (LTV)
Reflects how much profit the company received from sales to a specific client over the entire period of cooperation with him. Another name for the indicator is CLTV or CLV (Customer Lifetime Value).
LTV = revenue from a customer - costs of customer retention and acquisition
Task Completion Rate (TCR)
Allows you to understand how easy it is to complete the designated tasks the first time. The percentage of task completion is calculated as the ratio of the number of users who successfully completed the task to the total number of users who interacted with the resource element (order form, adding to cart, etc.). To determine the success or failure of a task, you need to define the criteria in advance, based on which the assessment will be conducted.
TCR = (number of visitors who failed the task / total number of users) x 100%
Return Visitor Ratio
It is necessary to assess the interest of users in the site. If the return rate is low, then this is normal for organizations selling one product that can be used for a very long time. For example, for construction companies or real estate agencies: a person who bought a house is unlikely to return to the company's site in the near future.
Return rate = (number of return visits / total number of visits) x 100%
Cost Per Lead
To calculate it, you need to divide the cost of an advertising channel by the number of leads that were received from it over a certain period of time.
CPL = Marketing spend / Number of resulting leads
ARPV (Average Revenue Per Visit)
Shows how much one visit costs on average, that is, how much profit one visit brings.
ARPV = revenue for the period under consideration / number of visits for the same period
There are more than 32 types of KPI indicators in e-commerce. And constant monitoring, evaluation, and analysis of each of them is necessary. Which indicators will be chosen as key ones depends on the company's goals and its marketing strategy.
Marketing metrics
Source: shutterstock.com
When you are just starting to implement the system, it is better to stop at 5-10 indicators, rather than analyze everything without even understanding what they mean. Later, you can analyze other indicators, which will help optimize the Internet marketing strategy, traffic acquisition channels, etc.
What are the rules for choosing KPI indicators that are suitable for a particular business model?
The choice should be based not only on the goal. It is necessary to take into account the company's field of activity and business model. A B2C company selling construction tools focuses on the average check size, search visibility, traffic, customer exit points and conversion. And for a B2B company providing software installation and maintenance services, the average customer lifetime, lead acquisition cost and conversion are much more important.
Read also!