With growing social media influence and marketing budgets, a business needs to keep track of their clients. Clients are fundamental to keeping a business running and there must be a growing list of clients. That is where the conversion cost formula comes into play. This could also be called cost-per-result or cost-per-action. So what is the conversion cost formula and why should you begin calculating it?
The Meaning of the Conversion Cost Formula
We define the conversion cost formula as the cost of acquiring a customer. The cost is equal to the total amount spent on the digital marketing campaign divided by the amount of customers acquired. For instance, if your business spent $500 on your campaign and you acquire 50 customers, your conversion cost would be $10. This was calculated by dividing $500 by 50 conversions. The conversion cost formula can be used in all sorts of ways and you should use it to determine the productivity of your marketing.
Total Campaign Cost
Your business’ marketing cost varies by industry. A solution for one business is not the solution for yours, and that is acknowledged. Your marketing must be efficient and effective so that you feel your profits are not disappearing into a black hole. Your marketing campaigns can range from display ads