Remember that you can and should decide which indicators you select for your profiles. Examples:
- Gender, age.
- Device (for example iPhone owners).
- 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).
CR = Attributed conversions * 100 % / Amount of visitors
Conversions should be calculated for everything. But mainly for:
- 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