Return on investment
Measure the effectiveness of channels pay comparing revenue to marketing spend.
ROI=Total InvestmentsNet Profit×100 Year over year growth
Measure and compare variations for revenue, conversion rates, average order size, customer lifetime value and more.
YOY=Sales last yearSales this year−Sales last year Customer lifetime value
Understand the average value of a customer by using total profits, number of customers, and average number of years you retain a customer.
CLV=AVG order value×Net profit %×AVG customer retention×AVG purchases per year×AVG customer lifecycle in years Average order value
Determine the AOV overall and for each important channel.
AOV=Total number of ordersTotal revenue Conversion rate
Proportion of visits that result in purchases both overall and per channel.
CR=VisitsTransactions×100 Customer acquisition cost
How much overall are you paying to get customers. This is not cost or conversion
CAC=CAMCC+W+S+PS+O MCC: Total marketing campaign costs related to acquisition
W: Wages associated with marketing and sales
S: The cost of all marketing and sales software
PS: Any additional professional services used in marketing and sales
O: Other overheads realted to marketing and sales
CA: Total customers acquired
Cost abandonment rate
Per each important channel & per total
CAR=1−the total number of add to cart clicksthe total number of people who start checkout Search penetration index
How many visits are you getting from all search volume.
SPI=number of searchesnumber of visitors Purchase intention
How many users are on your website to buy a product.
PI=all visitorsvisitors that want to buy Customer satisfaction index
Determined with post purchase surveys.
Customer satisfaction scale→scale 1-5 How many customers are willing to recommend you to their friends
Net promoter score→scale 1-10