Digital marketing management indicator formulas
Posted: Thu Jan 23, 2025 8:16 am
Let's move on to the next 5 indicators, but in this case for marketing management.
Cost per Lead
The high number of users converted into qualified leads will not guarantee success in the strategy, so you must know which and how many potential leads there are to convert them into clients. But it will also be important to measure their cost.
Formula:
(CPL) = Total investment to get Lead / Total leads achieved
Example: Let's say you have a digital business, where you hong kong whatsapp resource invest $5,000,000 in a Google Ads campaign and it generated 50 potential leads. If you calculate it according to the formula, it will give this result:
Investment $5,000,000 / 50 = $1,000,0000 (this will be the cost for each lead)
Conversion rate
Knowing the conversion rate percentage at each stage of the sales funnel will allow you to measure each user action.
Formula
Conversion of leads to customers = (Total leads / # of new customers) X 100
Example: Imagine that your website received 1,000 visits in the month of June and there were 100 registrations on your newsletter subscription form. Then, applying the formula, the result will be:
1,000 visits / 100 form registrations = 10 X 100 = 0.1% is the conversion rate.
Customer Acquisition Cost (CAC)
Measures the initial financial investment to get potential customers to make a purchase.
Formula:
Cost per lead = Total marketing spend / # of leads
Example:
Marketing plan investment for an online store ($10,000,000) / 50 qualified leads
= $200,000
That is, the cost for each qualified lead is $200,000.
ROI (Return on Investment)
This metric is one of the most important in marketing measurement indicators .
This can help you see the impact of the money spent on the plan, define a budget and plan long-term strategies. Measure the return on investment.
Formula:
ROI = Profit obtained / Amount spent on the investment.
Example: in a services ecommerce the profit or net benefit was $2,000,000 and the initial investment was $500,000, then using the formula, the return on investment was:
Profit $2,000,000 / initial investment $500,000 = 4
In conclusion, the ROI is 4 or 0.04%.
Customer Lifetime Value (LTV)
The value a customer contributes to your business from the moment they make their first purchase. Highly recommended for growing businesses because this metric can help determine how long it will take to recover their investment.
Cost per Lead The high number of users converted into qualified leads will not guarantee success in the strategy, so you must know which and how many potential leads there are to convert them into clients. But it will also be important to measure their cost.
Formula:
(CPL) = Total investment to get Lead / Total leads achieved
Example: Let's say you have a digital business, where you hong kong whatsapp resource invest $5,000,000 in a Google Ads campaign and it generated 50 potential leads. If you calculate it according to the formula, it will give this result:
Investment $5,000,000 / 50 = $1,000,0000 (this will be the cost for each lead)
Conversion rate Knowing the conversion rate percentage at each stage of the sales funnel will allow you to measure each user action.
Formula
Conversion of leads to customers = (Total leads / # of new customers) X 100
Example: Imagine that your website received 1,000 visits in the month of June and there were 100 registrations on your newsletter subscription form. Then, applying the formula, the result will be:
1,000 visits / 100 form registrations = 10 X 100 = 0.1% is the conversion rate.
Customer Acquisition Cost (CAC)Measures the initial financial investment to get potential customers to make a purchase.
Formula:
Cost per lead = Total marketing spend / # of leads
Example:
Marketing plan investment for an online store ($10,000,000) / 50 qualified leads
= $200,000
That is, the cost for each qualified lead is $200,000.
ROI (Return on Investment)This metric is one of the most important in marketing measurement indicators .
This can help you see the impact of the money spent on the plan, define a budget and plan long-term strategies. Measure the return on investment.
Formula:
ROI = Profit obtained / Amount spent on the investment.
Example: in a services ecommerce the profit or net benefit was $2,000,000 and the initial investment was $500,000, then using the formula, the return on investment was:
Profit $2,000,000 / initial investment $500,000 = 4
In conclusion, the ROI is 4 or 0.04%.
Customer Lifetime Value (LTV)The value a customer contributes to your business from the moment they make their first purchase. Highly recommended for growing businesses because this metric can help determine how long it will take to recover their investment.