Set the goal before the measurement
Performance marketing without a clear goal quickly turns into collecting flattering numbers. Before you start, decide whether you want sales, inquiries, bookings, sign-ups or another concrete result. Then check that the events are configured correctly in the analytics and in the ad systems.
1. Conversion rate
The conversion rate says what share of visitors take the action you want. A low figure is not necessarily a problem with the ad; it can also be an unclear offer, a slow landing page or a form that asks too much.
2. Cost per conversion
This shows how much ad budget goes into one measured action. Always read it alongside the value and the quality of that conversion.
3. Inquiry quality
Ten suitable inquiries can be worth more than a hundred generic contacts. The sales side should regularly mark which leads fit the offer and which turn into customers. Track two rates: how many inquiries are qualified, and how many become customers.
4. Cost of acquiring a customer
Acquisition cost is more than the price of a click. For a realistic figure, include the ad budget, producing the content, the tools and the agreed share of the team’s time. The formula: all acquisition costs in the period, divided by the number of new customers. Always use the same set of costs, otherwise comparisons between periods or reports do not hold.
5. Return on ad spend
In online sales, ROAS is the ratio between attributed revenue and money put into ads. A high ROAS does not automatically mean a high profit, so read it against your margin, your returns and your other costs.
6. Assisted conversions and the path to purchase
Someone may see the ad first, search for the brand on Google later, and convert through an email. So judge the role of each channel rather than crediting everything to the last click. Measurable: the share of assisted conversions, the number of touches before converting, and the time from first contact to purchase.
7. Customer value over time
If customers come back, the first purchase is only part of the picture. A higher lifetime value allows a higher acquisition cost, but it needs reliable data and a long enough observation period.
A worked example from click to money
Invented but realistic numbers for a service company, so the relationship between the metrics is visible: 1,000 EUR of spend brings 40 inquiries (25 EUR per inquiry). Sales marks 12 of them as qualified (83 EUR per qualified inquiry), and 4 become customers. The cost of acquiring a customer is therefore 250 EUR. If each customer brings 1,200 EUR of revenue, that is 4,800 EUR, a ROAS of 4.8. At a 40 percent margin, 1,920 EUR of contribution remains, so 920 EUR above the ad cost. The same calculation with 8 customers instead of 4 is an excellent campaign; with 2 it is a loss, even though the clicks and the cost per click are identical.
What to check every week
- the spend and whether conversions are recorded correctly;
- the cost and the quality of the inquiries;
- how the landing pages and devices are performing;
- changes in audiences, search terms and creative;
- a proposal for the next test, with a clear hypothesis.
For joining channels to measurement, see digital marketing, Google Ads and Meta advertising.