Here is a handy Reference Sheet that shows how to calculate ROI, Conversion Rate, and other specific online metrics. These calculations are applicable for Search Engine Marketing, or any Pay per Click campaign.
1) To calculate Cost per Acquisition (CPA):
2) To calculate CPC:
Cost of Acquisition*Conversion Rate
3) To calculate Conversion Rate:
CPC/Cost of Acquisition
4) To calculate the # of Conversions:
Total Clicks * Conversion Rate
5) To calculate ROAS (Return on Advertising Spend):
â€¢ (Revenue-Advertising Cost)/ Advertising Cost
Then, multiply the ROAS by 100 to express as a percentage.
6) To calculate: Average CPC:
Total Cost/Total Clicks
If you are in the Lead Generation business, and you have a call center, then there are additional metrics and calculations to take into consideration. The percentages need to be based on actual call center numbers.
Lead Generation Assumptions (hypothetical):
â€¢ Click to Web Form Contact percentage=1%
â€¢ Contact Form to Lead percentage=35%
â€¢ Lead to Conversion percentage=4%
1) To calculate # of Contacts:
Click to Contact % * Total Clicks
2) To calculate the # of Leads:
# of Contacts * Contact to Lead percentage
3) To calculate the # of Conversions:
# of Leads * Lead to Conversion percentage
4) To calculate Cost Per Lead:
To improve your online metrics there are various PPC Strategies to experiment with.