Some marketing performance metrics I woke up dreaming about this morning…
Revenue Ratios
- Response rate = Response volume / Exposure volume
- Sales volume = how many sales
- Average sales value = Total revenue / sales volume
- Average Purchase Cycle = Total time taken for all sales / Customers
Cost Ratios
- Cost Per Visitor = Advertisement Cost / Number of Visitors
- Cost Per Lead = Promotion Cost / Number of Leads
- Cost Per Opportunity = Opportunity Development Cost / Number of Opportunities
- Cost Per Acquisition = Promotion Cost / Number of Customers
Basic Profit Ratios
- Profit Per Sale = Product Price – Cost Of Goods Sold (e.g.. Manufacture, Delivery and Merchant Costs)
- Gross Profit = Number of Sales x Profit Per Sale (before subtracting promotion costs)
- Net Profit = Gross Profit – Promotion Costs
- Gross Profit Per Visitor = Gross Profit / Number of Visitors
- Net Profit Per Visitor = Net Profit / Number of Visitors
Visit the campaign performance metrics page for more depth.
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