CAC: Customer Acquisition Cost
Formula: How do you calculate the cost per lead?
- CAC = ( marketing costs / sales )
- Example = 100,000 / 500 = 2,000 per lead
Customer acquisition costs are undoubtedly one of the most important key figures for a growing company. CAC (Customer Acquisition Cost), as the name suggests, gives you information about the total cost of acquiring a new customer.
This metric is crucial as it gives you a clear guideline to evaluate your marketing activities. If a marketing campaign doesn’t generate new customers at a lower price than your current customer acquisition costs and instead helps to increase them, it’s probably not an activity that justifies your team’s valuable time.
So you know what 1 lead (potential new customer) costs you
Calculator
Calculate your costs per click online for free:
CPA: Cost per acquisition
Formula: How do you calculate the cost per acquisition?
- CPA = advertising costs / number of conversions
- Example = 10,000 / 200 = 50 € per acquisition
Example
The CPA key figure tells you how much a complete acquisition, i.e. a paying customer or a purchase, costs you on average. Assuming you have spent €5,000 on a campaign and generated 100 purchases as a result, the CPA is €50.
So you know what a new customer costs you on average
Calculator
Calculate your costs per acquisition online for free:
CPC: Costs Per Click
Formula: How do you calculate the cost per click?
- CPC = advertising costs / clicks
- Example = 200,000 / 30,000 = 6.67 $
Example
To calculate the CPC, divide the total cost of advertising by the total number of clicks on the ad. Assuming you have spent $400 on an ad that has generated 100 clicks, the CPC is $4.
This way you know what 1 click on your project will cost you.
Calculate your costs per click online for free:
CPL: Costs Per Lead
Formula: How do you calculate the cost per lead?
- CPL = advertising costs / leads
- Example = 50,000 / 400 = 125 $
Example
To calculate the cost per lead, you first need to track your conversions to determine the number of leads generated. This will tell you what happens after a user clicks on your ad. The cost per lead is calculated by dividing the cost of an ad or campaign by the conversions it generates.
So you know what 1 lead will cost you
Calculate your costs per lead online for free:
CPM: Costs Per Mille
Formula: How do you calculate the cost per thousand contacts?
- CPM = (advertising costs / reach) x 1,000
- Example = 300,000 / 1,000,000 x 1,000 = 300 $
Example
Let’s say you spent 10,000 euros on an Instagram advertising campaign that was seen by 400,000 users. The CPM is then $25 per 1,000 users reached.
So you know what it will cost you to reach 1,000 people
Calculator
Calculate your costs per thousand contacts online for free:
CPV: Cost per View
Formula: How do you calculate the cost per view?
- CPV = advertising costs / number of views
- Example = 2,000 / 100,000 = 0.02 € per view
Example
The CPV key figure is primarily used in video marketing (e.g. YouTube or social media ads). If you invest €1,000 in a video campaign that generates 50,000 views, your CPV is €0.02.
So you know what a single video view will cost you
Calculator
Calculate your costs per view online for free:
CR: Conversion Rate
Formula: How do you calculate the conversion rate?
- Conversion rate = (conversions / interactions) x 100
- Example = 500 / 10,000 x 100 = 5%
Example
The conversion rate is calculated by dividing the number of conversions by the total number of interactions that can be attributed to a conversion in the same period. Assuming you have 100 conversions from 2,000 interactions, the conversion rate is 5%, as 100 / 2,000 = 5%.
Interaction can also mean reach
The conversion rate is the percentage of users who perform a desired action. A typical example is the percentage of visitors to a website who make a purchase. The conversion rate can also be related to the respective marketing channels, e.g. to calculate the conversion rate of your social media ads.
This key figure tells you how many successful deals you have (sales in e-commerce, newsletters, etc.) compared to the total reach.
Calculator
Calculate your conversion rate online for free:
CTR: Click Through Rate
Formula: How do you calculate the click through rate?
- Click through rate = clicks / total reach x 100
- Example = 2,000 / 100,000 x 100 = 2%
Example
For example, if an ad is displayed 500 times and is clicked 10 times, the click rate is 2%.
The click-through rate is another key figure in online marketing. It indicates the ratio of the number of clicks on an ad to the total reach. If the CTR of an ad is particularly low, you should check whether the targeting is addressing the right target group or whether changes need to be made to the image, text or call-to-action.
This shows you how many people have actively clicked on a link in relation to the total reach
Calculator
Calculate your click through rate online for free:
ER: Engagement rate
Formula: How do you calculate the engagement rate?
- Engagement Rate = ( Engagement [Likes, Comments and Shares] / Follower ) x 100
- Example = 100,000 / 250,000 x 100 = 40%
Example
If a total of 120 engagements (such as video views, likes, comments, shares, etc.) are recorded on one of your social media channels and a total of 3,600 users follow you, this results in an engagement rate of around 3.23%.
This shows you how active a community is.
Calculator
Calculate your engagement rate online for free:
LDCR: Lead to Deal Conversion Rate
How do you calculate the lead to deal conversion rate?
- Lead to deal conversion rate = (deals / leads) x 100
- Example = 100 / 800 x 100 = 8%
Example
Let’s assume you generated 2,000 new leads through your social media ads in October, which resulted in 40 deals. Then the lead to deal conversion rate is 2%, as 40 is divided by 2,000 and multiplied by 100.
This is how you see the completion success rate.
Calculator
Calculate your lead-to-deal conversion rate online for free:
LTV: Lifetime Value
Formula: How do you calculate the customer lifetime value?
- LTV = average revenue per customer × average customer retention period
- Example = € 500 × 3 years = € 1,500
Example
The LTV shows you the total value a customer has for your company during the entire business relationship. If a customer spends an average of €50 per month and stays for 24 months, their LTV is €1,200.
How to know how much a customer is worth to you in the long term
Calculator
Calculate your Customer Lifetime Value online for free:
ROAS: Return on Ad Spend / ROI: Return on Invest
Formula: How do you calculate the return on ad spend?
- ROAS = advertising revenue / advertising costs
- Example = 200,000 / 50,000 = 4
Example
If you spent 20,000 euros on Facebook ads in January and made a total profit of 80,000 euros, this results in a return on ad spend of 4 euros. This means that every euro invested generated a profit of 4 euros.
Anything over > 1 means you have taken in more than you have spent
The ROAS analysis shows whether an analyzed social media channel is profitable for you. After all, you certainly don’t want to spend more money on advertising in the long term than it brings in. A higher ROAS is therefore better.
Calculator
Calculate your return on ad spend online for free:
SOV: Share of Voice
Formula: How do you calculate the share of voice?
- Share of Voice = (sum of own mentions / sum of all relevant mentions of all competitors) x 100
- Example = 4,000 / 50,000 x 100 = 8%
Example
For example, if your company hashtags were mentioned 60 times and the other relevant hashtags were mentioned a total of 100 times, you would have a share of voice of 60%. This would mean that you have established yourself as a thought leader in your field.
How to see the relevance of your brands in the competition
Calculator
Calculate your share of voice online for free:
4.9 / 5.0