Divide the total cost of a marketing tactic by the number of sales made to get cost-per-sale (CPS) for a marketing report.
When creating KPI reports, marketers must include metrics that are relevant to the business, and ensure the reports are not overburdened with irrelevant data. Include cost-per-lead (CPL) in the report by adding the overall cost of all marketing strategies, like PPC, direct mail and dividing it by the total number of leads generated overtime.
Having a target for CPL is recommended to allocate marketing budgets for each marketing strategy. Calculating CPS can help marketers measure the performance of their sales teams and optimise efforts for a particular marketing initiative.
To calculate ROI, differentiate the revenue brought in by their products against the CPS, and project future income from those sales. Simple reports help evaluate business direction.
[3 minute read]
