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LTV (Lifetime Value) – helps you to establish the average value that a new customer brings to your company and, implicitly, to make a better estimate of sales; without an approximate forecast in this sense, there is a risk of spending excessively, without obtaining the results you want; it is calculated by multiplying the average value of a transaction made by a customer by the average number of transactions made by a customer during his retention period (the period of time in which he is loyal to your products); ROI (Return on Investment) – shows to what extent the investments made are profitable, helping you to evaluate the financial performance of your business; it is calculated by subtracting the initial cost of the investment from its final value.
Then making the ratio between the result obta Trinidad and Tobago Email List ined and the initial cost of the investment, which at the end is multiplied by 100. Let's say that an online store invests in a month 800 of euros in total in marketing campaigns (media budget + commission). In that month, it has total sales of 1000 euros. Thus his ROI will be: (1000-800)/800*100 = 25%. The cost per purchase/conversion – is calculated as the ratio between the budget used to promote a campaign and the number of conversions/actions; it is usually related to a certain advertising campaign or marketing channel.
It is essential to know the optimal cost per purchase of the competitors on the market in which you operate, in such a way as to approximate the value of this index as best as possible, especially in the first stage of launching your business in the online environment; ROAS - return on ad spend - is calculated by dividing the income generated by the advertising cost consumed; for example, a cost of 1700 lei budget on Facebook generates sales of 17000 lei, you have a ROAS of 10, so the indicator is positive, which means that you have obtained, in this case, 10 times more than you invested in the campaign.
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發表於 2024-2-17 13:06:35