Cost Per Lead (CPL)
Calculating the cost per lead is dividing the expenses from marketing campaigns and dividing them by the number of leads. Leads are typically from form fills or phone calls. By setting up conversion tracking in Google Analytics, these metrics are easy to calculate and a great way to set quarterly and annual goals. (If you need help with setup, let us know.)
Cost Per Thousand (CPM)
Technically, CPM stands for cost per mille (thousand). It is the cost a marketer will pay for every one thousand impressions. This is a metric often used to compare top of the funnel objectives (awareness) such as digital display campaigns, radio, print, radio. It’s one of the best metrics to compare cross channel investments.
Customer Lifetime Value (CLV)
This metric is a calculation that tells how much a business earns over the course of an average relationship of a customer. When a business is trying to decide how much to spend to acquire a customer, this metric can be very valuable. For example, if you know the CLV is $20k, you can decide if 5% of that ($1,000) is worth investing to get a single customer.
Return on Advertising Investment (ROAS) is a key performance indicator (KPI) in determining the ratio of return from ads vs the investment. Earning 3x the investment is a good benchmark. It’s great for analyzing digital channels to see which ones are the biggest drivers of growth. When the ROAS is ideal, that’s when the spend should be increased. (And just keep an eye on the ROAS daily.)