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Digital and e-commerce
Core digital marketing KPIs and their formulas
| KPI | Funnel stage | Formula | Question it answers |
|---|---|---|---|
| CPM | Awareness | Cost ÷ impressions × 1,000 | What does attention cost? |
| CTR | Consideration | Clicks ÷ impressions × 100 | Does the ad make people act? |
| Conversion rate | Conversion | Conversions ÷ clicks × 100 | Does the page turn visits into results? |
| CPA | Conversion | Cost ÷ conversions | What does one result cost? |
| ROAS | Conversion | Ad revenue ÷ ad spend | Do ads return more than they cost? |
| CAC | Business | Acquisition cost ÷ new customers | What does a new customer cost? |
| LTV (simple) | Retention | AOV × lifetime orders × gross margin | What is a customer worth? |
| Payback period | Business | CAC ÷ monthly margin per customer | How fast does a customer pay back? |
| KPI | Funnel stage | Formula | Question it answers |
|---|---|---|---|
| CPM | Awareness | Cost ÷ impressions × 1,000 | What does attention cost? |
| CTR | Consideration | Clicks ÷ impressions × 100 | Does the ad make people act? |
| Conversion rate | Conversion | Conversions ÷ clicks × 100 | Does the page turn visits into results? |
| CPA | Conversion | Cost ÷ conversions | What does one result cost? |
| ROAS | Conversion | Ad revenue ÷ ad spend | Do ads return more than they cost? |
| CAC | Business | Acquisition cost ÷ new customers | What does a new customer cost? |
| LTV (simple) | Retention | AOV × lifetime orders × gross margin | What is a customer worth? |
| Payback period | Business | CAC ÷ monthly margin per customer | How fast does a customer pay back? |