Key Performance Indicators

Remember that you can and should decide which indicators you select for your profiles. Examples:

  1. Gender, age.
  2. Device (for example iPhone owners).
  3. How the lead happen (phone call, form submission, online chat).

In other words, you choose to calculate how much a lead costs for people who call you by phone vs for those preferring the form. Maybe which form.

Number of leads

Lead means any contact with a client (phone call, data from a form on the site, online consultant).

Cost Per Click

CPC = Ad spend / Number of clicks

It varies depending on the industry, as well as on the type of campaign (e.g. search campaigns vs display campagns).

Conversion rate

CR = Attributed conversions *  100 % / Amount of visitors 

Conversions should be calculated for everything. But mainly for:

  1. Ad.
  2. Landings.
  3. Sales department (in an ideal, sales assistants individually).

Cost Per Lead

CPL = Ad spend / Number of leads

Cost Per Order

CPO = Ad spend / Number of orders

Order means any order (including those from existing compainies).

Cost Per Acquisition

CPA = Ad spend / Number of new customers

N.B.: Looks like CPO but the difference is that these are new customers.

Average Order Value

AOV = Revenue / Number of orders

Customer Lifetime Value

LTV = Total revenue / Number of customers

This is a very important indicator for spheres with constant clients (dentists, corporate lawyers, car insurance, any wholesale company etc.).

If you have a look at how high your CPA is, you may feel that it is pretty expensive. But other companies understand that each new customer constantly generates revenue, and they are ready to pay not depending on AOV but depending on LTV.

Return on Ad Spend

ROAS = Revenue / Ad spend

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