Organizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC, their formulas and the chain of events that builds value and efficacy in digital marketing.
2. {value }
{efficacy }
{spend }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
PRE-CLICK METRICS
When CPC decreases and
CTR increases, you get
more prospects
in your funnel.
Clicks / Impressions * 100
Total Cost / Number of Leads
CPC
Cost Per Click
CPL
Cost Per Lead
Total Period Cost / Customers Acquired in Period
CAC
Cost to Acquire a Customer
CTR
Click Through Rate
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
Digital Marketing
Metrics Pyramid
4. {efficacy }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
Total Period Cost / Customers Acquired in Period
CAC
Cost to Acquire a Customer
Cost ) / Cost * 100 ROI
7. {value }
{efficacy }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
Cost to Acquire a Customer
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
11. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
13. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
18. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
22. {value }
{efficacy }
{spend }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
PRE-CLICK METRICS
When CPC decreases and
CTR increases, you get
more prospects
in your funnel.
meet.ioninteractive.com/CAC
Clicks / Impressions * 100
Total Cost / Number of Leads
CPC
Cost Per Click
CPL
Cost Per Lead
Total Period Cost / Customers Acquired in PeriodCAC
Cost to Acquire a Customer
CTR
Click Through Rate
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer.This pyramid shows the key metrics that impact CAC,
their formulas and the chain of events that builds value and efficacy in digital marketing.