What’s my Customer Acquisition Cost,CACcost?
CAC
It throws light on the ROI generated by your sales and marketing team, and indicates the total value your company gets from each customer, against the amount you have spent to acquire that customer.
What’s the Lifetime value, LTVof my customers?
LTV
The predicted revenue generated over the entire relationship with your company. This metric is very useful for making predictions as well as informed decisions about pricing, marketing, and overall business strategy.
What's my LTV
to CAC ratio?
to CAC ratio?
CAC RATIO
It helps you understand the profitability and sustainability of your business model. The ratio indicates how much value you get back for every pound/dollar, you want this ratio to be higher than 1, meaning you earn more than you spend.
What’s my conversion rate?
CONVERSION RATE
It directly links to ROI, assessing the profitability of your marketing campaigns. Regularly monitoring enables continuous refinement
of your strategies to boost conversions.
of your strategies to boost conversions.
How do I calculate Cost Per Action, CPA?
CPA
It helps you figure out if you’re burning too much money on marketing efforts, with not much ROI and few conversions or customer acquisitions ie: your business is unbalanced and unlikely to grow.
How do I set our Marketing budget?
MARKETING BUDGET
Track your spending and measure ROI for each marketing campaign. Having a stable digital marketing budget allows startups to stay ahead of the competition, and maintain market position.
ROAS?
RETURN ON AD SPEND
ROAS
Return on Ad Spend helps you to evaluate the effectiveness of your marketing campaigns. A ‘good’ ROAS is anything above 3 (although it varies a little by industry etc).
How do I set
our target CPA?
our target CPA?
TARGET CPA
Converting your ROAS target to a CPA target is key to understanding the performance of your business. You can also achieve your advertising objectives with machine learning.