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CAC (Customer Acquisition Cost)
CAC is a vital metric that helps businesses determine the average cost required to acquire a new customer. It encompasses all the expenses associated with marketing and sales efforts, including advertising, salaries, and overhead costs. A lower CAC indicates that a company is acquiring customers efficiently.
Formula: CAC = Total Cost of Acquisition / Number of New Customers
CPC (Cost per Click)
CPC measures the cost a business incurs each time a user clicks on one of its online ads. It’s a fundamental metric for pay-per-click (PPC) advertising campaigns and helps advertisers evaluate the effectiveness of their ad spend.
Formula: CPC = Total Advertising Cost / Number of Clicks
CPL (Cost per Lead)
CPL calculates the cost associated with generating a lead or potential customer through marketing efforts. It accounts for expenses related to advertising, content creation, and lead generation campaigns. A lower CPL suggests efficient lead generation.
Formula: CPL = Total Marketing Cost / Number of Leads Generated
CPM (Cost per Mille)
CPM is a metric used in display advertising to determine the cost of a thousand impressions or views of an online ad. It helps advertisers assess the cost-effectiveness of their ad campaigns in terms of exposure.
Formula: CPM = (Total Cost of Ad Campaign / Total Impressions) * 1000
CR (Conversion Rate)
CR represents the percentage of website or landing page visitors who take a desired action, such as making a purchase or filling out a contact form. A higher CR indicates that a higher proportion of visitors are converting, which is a positive sign for businesses.
Formula: CR = (Number of Conversions / Total Visitors) * 100
CTR (Click-Through Rate)
CTR measures the effectiveness of an online ad by calculating the percentage of users who click on it after seeing it. It’s a crucial metric for assessing ad engagement and relevance.
Formula: CTR = (Number of Clicks / Number of Impressions) * 100
ER (Engagement Rate)
ER quantifies the level of interaction and engagement with your content or social media posts. It reflects the percentage of your audience that actively engages with your content, which can indicate the effectiveness of your marketing efforts.
Formula: ER = (Total Engagements / Total Reach or Views) * 100
LDCR (Lead to Deal Conversion Rate)
LDCR calculates the percentage of generated leads that ultimately convert into paying customers. It provides valuable insights into your sales funnel’s efficiency in turning leads into revenue.
Formula: LDCR = (Number of Deals Closed / Number of Leads) * 100
ROI (Return on Investment)
ROI evaluates the profitability of an investment by comparing the gains (or revenue) to the costs. It’s a critical metric for assessing the financial success of marketing campaigns and investments.
Formula: ROI = (Net Profit - Cost of Investment) / Cost of Investment * 100
ROAS (Return on Advertising Spend)
ROAS measures the revenue generated from advertising compared to the advertising expenses. It helps advertisers determine the efficiency of their ad spend and whether it’s delivering a positive return.
Formula: ROAS = (Revenue from Advertising / Cost of Advertising) * 100
SOV (Share of Voice)
SOV assesses your brand’s presence or visibility in a specific market or industry compared to competitors. It’s a valuable metric for understanding your market position and competitive landscape.
Formula: SOV = (Your Brand's Impressions / Total Market Impressions) * 100
