Whether you are doing your own advertising or hiring an agency, you’re going to come across terms you need to understand. Here’s the “short-list”:
Lifetime value of a client/customer – average they spend during their tenure of being a client.
Client retention period – Average length of time clients stay with you.
Close ratio – what percentage of leads do you close.
Conversion ratio – what percentage of your website traffic converts into leads
Click through rate – The percentage of clicks on your ads versus the number of impressions.
Cost per click – The price you pay when someone clicks on your ad.
Cost per lead – The total adspend divided by the number of leads.
Cost per acquisition – The total adspend divided by the number of clients.
Channel Lead attribution – source lead came from (or came to your website from what referral source).
Net Value (Profit after all expenses – whether adspend, affiliate fees, operating expenses, and more.
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