Cost per Order Metric

Measure the average advertising costs that go into generating a single sale.

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Overview

The Cost per Order metric measures the total cost in advertising that went into generating a single purchase. Monitoring this metric helps you measure how cost-effective your marketing efforts are compared to the average revenue per order.

Formula

Total capital invested into marketing efforts/Total orders

Reporting frequency

Monthly

Example of KPI target

$15 per order

Audience

Marketing Manager, Online Sales Manager

Variations

Advertising cost per order

Advertising spend per online order

Related Metrics & KPIs

Coupon Conversion

Coupon Conversion

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Shipping Error Rate

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Revenue from New Visitors

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