Key Client Partnerships Manager
Posted: Wed Dec 18, 2024 10:58 am
LTV (Lifetime Value, customer value over the entire period) This metric shows how much money you earn on average from one customer over the entire period of cooperation with them. To calculate LTV, you need to multiply the average revenue from one customer by the average number of purchases per period and subtract the average cost of attracting and servicing a customer. CAC (Customer Acquisition Cost) This metric shows how much money you spend to convert a potential customer into a buyer. To calculate CAC, divide the total amount spent on marketing and sales by the number of new customers.
Important! In practice, in the indian whatsapp number vast majority of cases, there is no need to use absolutely all metrics to objectively evaluate the marketing efficiency coefficient. The choice depends on the goals, strategy, resources and specifics of your business. Some metrics may be more important and relevant to you than others. And others, on the contrary, are practically useless, so there is no need to spend your own resources on using them. Example of calculating marketing indicators For clarity, we suggest looking at several examples of calculating some popular marketing indicators: CPL, ROI and CTR. Example of calculating CPL (cost per lead) Let's assume that over a given period, a marketing campaign cost an organization $10,000 and generated 500 leads.
CPL = 10,000 / 500 = $20 per lead Thus, the cost of a lead in this case is $20. Example of ROI (return on investment) calculation Let's say you ran a marketing campaign with a total spend of $20,000 to create and place ads. You also tracked the profit that came from that campaign, and it was $40,000. ROI = (40,000 - 20,000) / 20,000 × 100 = 100% The ROI in this example is 100%, meaning that every dollar invested produces $1 in profit. Example of calculating CTR (click-through rate) Let's imagine that your online ad has been shown 100,000 times and the number of clicks on the ad has reached 2,000.
Important! In practice, in the indian whatsapp number vast majority of cases, there is no need to use absolutely all metrics to objectively evaluate the marketing efficiency coefficient. The choice depends on the goals, strategy, resources and specifics of your business. Some metrics may be more important and relevant to you than others. And others, on the contrary, are practically useless, so there is no need to spend your own resources on using them. Example of calculating marketing indicators For clarity, we suggest looking at several examples of calculating some popular marketing indicators: CPL, ROI and CTR. Example of calculating CPL (cost per lead) Let's assume that over a given period, a marketing campaign cost an organization $10,000 and generated 500 leads.
CPL = 10,000 / 500 = $20 per lead Thus, the cost of a lead in this case is $20. Example of ROI (return on investment) calculation Let's say you ran a marketing campaign with a total spend of $20,000 to create and place ads. You also tracked the profit that came from that campaign, and it was $40,000. ROI = (40,000 - 20,000) / 20,000 × 100 = 100% The ROI in this example is 100%, meaning that every dollar invested produces $1 in profit. Example of calculating CTR (click-through rate) Let's imagine that your online ad has been shown 100,000 times and the number of clicks on the ad has reached 2,000.