Conversion Rate Optimization (CRO): In performance marketing results, CRO measures the effectiveness of a website or campaign in transforming visitors into leads or customers.
Customer Lifetime Value (LTV): LTV predicts the total revenue a business can expect from a single customer over the entire duration of their relationship.
Click-Through Rate (CTR): CTR measures the percentage of people who click on a link or ad after seeing it, indicating how well your content drives engagement.
Return on Investment (ROI): ROI calculates the profit generated from marketing investments relative to their cost, helping assess campaign profitability.
Cost Per Click (CPC): CPC is the amount you pay each time someone clicks on your paid advertisement in PPC campaigns.
Bounce rate: Average Bounce Rate shows the percentage of visitors who leave your ecommerce store after viewing only one page without taking any action. It is crucial factor we consider to understand the audience behaviour and indentify where brands struggle with price or collection or services.
Returning Customer Rate: measures the percentage of customers who make repeat purchases from your ecommerce store. A high returning customer rate indicates strong customer loyalty and satisfaction with your products. This is one of the strong performance marketing indicator to measure campaign optimisation over time.
Last three KPI is DigitalDC’s Performance Marketing Expertise. The most crucial KPI’s which are totally interlocked where brands who scale understands this.
Return on Ad Spend (ROAS): ROAS measures revenue generated per rupee spent on advertising (Revenue ÷ Ad Spend). ROAS is one of the most important metric to measure the effectiveness of strategy, content & conversions.
Customer Acquisition Cost (CAC): CAC is the total amount spent to acquire a single new customer, including marketing, sales, advertising, and related operational expenses.
Average Order Value: AOV calculates average spend per order (Total Revenue ÷ Number of Orders). This symbiotic relationship means that boosting AOV by even 10-15% can dramatically lift ROAS without requiring additional ad budget.
Boosting AOV by even 10-15% can dramatically lift ROAS without requiring additional ad budget and cut down your CAC by up to 15%. DigitalDC strongly believes that for commercial, sub premium, premium brand cannot exceed CAC of 30%. Any thing over and above 30% CAC tells that your product market fit is not acheived or your content strategy is tanked or your performance marketing metrics are bleeding down the drain while your eyes are open.
When you spend ₹500 to acquire a customer buying ₹2,000 worth of products, you make ₹1,500 before operation over heads and COGS. Bump that to ₹2,500 through upselling, and you’re now making ₹2,000 a 33% higher revenue with the same ad spends. This is why brands with high order values (₹5,000+) profit at 2X or 3X ROAS, while startups who donot understand big play with lower ticket sizes need 5X+ ROAS just to touch break even. so ROAS with high AOV is always the game changer.
To fix things as best performance marketing agency in India, We help you to fix all metrics by compliance and scale your brand with GTMS and indentifying product market fit.