Digital Marketing Metrics

cost per click

CTCwhich is among the more Internet-legacy metrics. The marketer has to pay for the click, not necessarily the impression. Sometimes, impressions are higher when pricing on clicks.

CPC * number of clicks

cost per click formula

click through rate

measures the clicks relative to the impressions. This measurement aims to measure efficiency.

conversion rate

which determines the amount of purchases

(number of conversions / impressions) * 100

conversion rate formula

effective cost per thousand

which factors profit and earnings (by some accounts, this is a more effective measure for “effectiveness”). Think again about impressions

total expenditure / vanity metric) * 1,000

eCPM formula

effective cost per click

used primarily online to calculate effectiveness of online campaigns when the rate model is cost per click (CPC). The eCPC measure aims to evaluate profitability

estimated lifetime value of a customer

measured yearly and referred to as eCLTV or eLTV

marketing expense to revenue ratio

this measure is similar to marketing ROI, but has more emphasis on marketing expenditures which include the salaries or costs of your agency relationship with the client. The metric explains what you spend on marketing compared to how much revenue is generated by the client.

Time to Pay Back CAC

measure informs teams and clients the number of months necessary for the client to earn back the CAC spent to acquire the new customer

avg lead close rate

determines the effectiveness of your marketing funnel (from top to bottom). No business achieves perfection but it’s important to continually evaluate the health of your funnel.

net promoter score

This is the customer loyalty metric that some believe is a “customer happiness” indicator. Forma survey measures are often associated with NPS tracking.

cost per engagement

which means that a payout is triggered every time a user engages with an ad (or content). An engagement is any type of user interaction.

(number of clicks / number of impressions) * 100

click through rate formula

Cost per acquisition of customer

This formula aims for marketing teams to see the direct costs of acquiring customers from any channel utilized in a campaign

total sales and marketing cost / number of new customers

CAC formula

CPC - eCPC

epcp formula

total spent / number of conversations or actions

eCPA formula

total amount of marketing cost / total amount of revenue generated

Marketing expense to revenue formula

Percent of promoters - percent of detractors

NPV formula

Total Amount Spent / Total Measured Engagements

cost per engagement

cost paid by a marketer or advertiser

CPM

cost per click

CPC

Cost per action

CPA which involves any acquisition related to customers such as newsletter signups, purchases, or other activations that can clearly show attribution

cost per visit

The difference with CPV is that visits are factored CPV

customer acquisition costs (CAC) / (revenue per month for average customer - expenses per month for average customer)

CAC formula

Average sales from active customers per year / average number of years as an active customer

CLTV formula

New customers this month / leads in a given month

AVG lead close rate equation