Consider measures to achieve the set KPIs
Posted: Wed Jan 22, 2025 3:38 am
In order to allocate your budget appropriately, it is important to analyze the issues and areas for improvement with your existing marketing initiatives. For example, "We are running listing ads, but our cost per acquisition (CPA) is 100,000 yen per inquiry, which is far above our target." If the measures are not contributing much to achieving your goals, you should reduce the budget or stop them. You need to be selective and allocate the budget to new measures.
STEP 3 Calculate sales and profits per customer india telegram data Calculate your profit per customer ( LTV ). By determining the LTV, you can estimate how much profit you will make for the budget you invest. There are several methods for calculating LTV, but the most common are as follows: How to calculate LTV Suitable cases Customer annual transaction amount x profitability x number of years the customer has been with us When dealing with B2B products under long-term contracts Average purchase price for all customers x average number of months continuing Subscription-based products and services Average customer price x gross profit รท cancellation rate Subscription-based products and services Calculations include the possibility of cancellation For example, if you want to calculate the LTV for a transaction with a specific company for a B2B product, the formula would be as follows: Customer annual transaction amount (1 million yen) x profit rate (50%) x number of years the customer has been with the company (3 years) = 1.
5 million yen If you have implemented marketing measures in the past, it would be better to provide the LTV for each measure. This will clarify the profitability of each measure, which will be useful for prioritizing and allocating budgets. STEP 4: Calculate the cost per lead for each campaign The next step is to calculate the cost per lead for the campaign you are considering . Knowing the cost of acquiring a lead will help you determine cost-effectiveness.
STEP 3 Calculate sales and profits per customer india telegram data Calculate your profit per customer ( LTV ). By determining the LTV, you can estimate how much profit you will make for the budget you invest. There are several methods for calculating LTV, but the most common are as follows: How to calculate LTV Suitable cases Customer annual transaction amount x profitability x number of years the customer has been with us When dealing with B2B products under long-term contracts Average purchase price for all customers x average number of months continuing Subscription-based products and services Average customer price x gross profit รท cancellation rate Subscription-based products and services Calculations include the possibility of cancellation For example, if you want to calculate the LTV for a transaction with a specific company for a B2B product, the formula would be as follows: Customer annual transaction amount (1 million yen) x profit rate (50%) x number of years the customer has been with the company (3 years) = 1.
5 million yen If you have implemented marketing measures in the past, it would be better to provide the LTV for each measure. This will clarify the profitability of each measure, which will be useful for prioritizing and allocating budgets. STEP 4: Calculate the cost per lead for each campaign The next step is to calculate the cost per lead for the campaign you are considering . Knowing the cost of acquiring a lead will help you determine cost-effectiveness.